Hi Sahig
You can apply either in Australia or India. If you have a tourist visa or can get one, you will be able to apply for spouse visa in any capital city in Australia once you arrive ... however, they prefer you to apply in your country of origin and will ask lots of questions about why you're not doing that. However, they will ultimately allow it as there is no law against it. It takes longer to be granted that way - 6-8 months - and you cannot work (legally) while the processing is taking place (you'll be put on a bridging visa if your tourist visa expires during the processing time).
Hi Mehnaz
My husband spoke to his case manager again today and has now been told end of next week. So, that will make it four months since submission and even then no guarantee as we have been getting this run-around for the last 4 weeks.
I think you should count on definitely four months from your submission date and not make any plans to leave before that. We're stuck as our tickets are booked for Dec 2nd and now not sure we can leave then. Grrrr
Next update hopefully will be a good one!
Sarah