SDAH NDLS Duronto: দৌঁড়ে চলো , দিল্লি চলো - PPG

Let us go by my example. If CNO surrenders the vacant quota to the originating station a day before, then at the time of charting it could be given to an end-end passenger on the WL. So you are right, his name should figure against an OS berth. But needs to be confirmed sometime.
Sometimes, Railway people could get the OS quota surrendered earlier, so that it can be given to a high WL of their choice. I doubt it happens, but a possibility nevertheless. But frankly, I have very little interest in finding this out
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other way of making the best use of this system is: You are at MAQ and want to travel to LTT. The waiting list is huge. You can ask me staying at CNO to book an OS ticket from CNO-LTT while you book a PRS ticket from Maq-CNO. Although a bit more expensive, this example could be a viable option in case you have a friend at an OS station.
Regarding ''Only thing is that the left out OS of train is sent to nearest rail head or train originating station.'' My understanding of the circular is train originating station or nearest charting station.
I was thinking about the reason behind the circulars of 2011. In the previous situation the small chart would be handed over to the TTE and if there was a vacant berth, the TTE could have made a killing with the on-train WL passengers. In the new system, it goes back to the PRS. The flip side, is CNO could use the vacant OS berths even 30 minutes before the train departure, whereas now that have to get the OS reservation before 1800 hrs the previous day.
The other point is having OS quota does not prevent me from booking an eticket on the PRS for a journey starting from CNO