Hi Krishna,
The company wants to verify that even though you failed, you have participated with your best efforts in the exams. Failed mark sheet is an indication of your attendance to the exam.
It also is an indication of your sincerity to attend the curriculum, & that you were not banned or something from the university for that particular exam.
It is understandable that in frustration of failure in exam, or otherwise in happiness of passing on next semester, you might have thrown away the failed mark sheet; but that mark sheet defines one year/semester in your educational life. Losing that would mean losing that semester officially from your life.
This might be the first time, but surely will not be the last time you will be asked for that mark sheet. Please try to obtain a duplicate from the university.
University provided original mark sheet is your property & no college would ask you to submit it for any reason. They only ask for submission of original, if they are going to replace it with the reverification of marks. If there was a re-exam, then they do not take it back. Also, they could not deny, if you ask for the duplicate of the same.
On other note, my sincere request to you is not to become hyper/cynical for this matter. Nobody would ask you for failed marriage, as that is not the criteria for obtaining your job (unless you apply to work with a marriage bureau, or a marriage counselor). You employer hires your services on basis of your academics & if they are interested to know about the missing semester results in your academics, then there is nothing wrong in it. As I said before, this is not a conspiracy to frame you like the Delhi minister example you have given.
Also FYI.. American embassy is not the standard for Indian organizations to set their rules. (e.g.: American embassy asks for a birth certificate with proper 'name' mentioned on it for work permit applications, while Indian organisations accept the ones with just mention as "Boy/Girl". These are different local rules. You cannot judge these organisations by comparing them like this.)
If your anger is temporary, then it is ok.... but if you continue this tone/attitude towards the suggestions, then I doubt anybody on this forum would be able to help you further (They will respond, but would not be able to help!)
Best Regards,
Amod Bobade.