Wrong visa info given in London visa office

Went to London to get , I hoped, a 5 year business Visa!
Having had 2, 2 year bus. visas previously on the strength of buying rugs in India for my UK business, and now having bought a house and established an Indian Co. of my own.
But as my paper work (Reserve Bank of India certificate had not come through) was knocked back to a one year X visa, with assurances that when the paper work with the Reserve Bank was complete I could have my visa chaned in India!
NOT SO, I am told I have to fly back out, preferably to the UK and have it changed there, and that in the meantime, I am not allowed to carry on any business dealings until it is changed?!

Any experience, thought or info appreciated:
Aquaman

X visas are renewable within the country so presumably they're saying they won't alter your visa.

I always thought that X visas were the best ones to aim for anyhow.

I could be totally wrong but I thought you could get them renewed annually in Panjim for 30 rupees with no hassle.

I don't understand the bit about you not carrying out any business, though. I'd be inclined to totally ignore it.