I think my reply and the others above make it quite clear that an Indian passport should not be used to get an H-1B once Canadian citizenship has been obtained.. Whether it can be used or not is upto you.. At some point one would have to lie about something...to go through the process.
Secondly your question about a TN applying for a GC has been covered thousands of times. The answer is: No.(perhaps technically it is doable but it is not advisable and almost always won't work as TN is not a dual-intent visa status like H-1B etc.)
Please search the forum before posting queries that have been covered before.
There is no harm in using an Indian passport to get H1B it is perfectly legal as long as you have not obtained the cdn citizenship at that point.
After getting the cdn passport, stop using the Indian passport - it DOES NOT affect your status.
Regarding the TN->US green card, it is possible but you have to be careful at some stages (as described earlier, since TN is a single intent status)
Someone has correctly stated - Not worth the risk to apply on Indian passport. Await your Canadian citizenship and then go ahead . At least you are sure on one side and are still a Can citizen even if your GC gets stuck.
Q that comes to my mind is - If a Cdn citizen gets a GC will he have to abandon his citizenship.... I am sure he doesnt have to do that while applying for an H1 ?
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