Bro i got same response today. paper route and early this year too. i really don't know the reason why..

Toecyn:
My brother got his decision envelope today. He applied in February via paper route. A note was in the decision envelope that says something like “we are aware that you might need your passport for emergency travel, we have decided to return your passport but we are still processing your application. Once we need a passport we would request that you submit your passport at the VFS office”

yes, its paper not online. any update on paper applications?

dapsalmy:
Sounds like your application is paper not online?