I don't think it's meant that the REME was formed in India, but that the troops re badging to the new REME where ever they were in the world needed a cap badge, the Units in India had the description but had never seen the badge so it was made up locally from the description.......hence the misinterpretation.
A fantastic find of a much sought after badge, I have seen it sell for ridiculous amounts of money.
Regards
Sean
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