H1 Transfer - Legal issues (Urgent )

[maheshkrishna_vollala]

I am working with a company A in India.
I got my H1 and it is valid till 2007 JUL.

I have been to USA (California) in Feb 2005 and returned in June 2005. Now i am in India.I have all my pay slips with me.

Now i have consulted a company B in USA and they are ready to do my H1 transfer.But they are saying that transfer will be done only if i am in USA.

So they are asking me to come to USA with the old H1 VISA and once i reach there they will do the transfer.
Once the transfer is done then they asked me to resign from the company A.

Please let me know if it leagle to travel to US with company A's H1-B VISA and transfer my H1 and then resign to Company A.

Is it not possible to transfer my H1 while i am in India ?
If yes, do i need tio go for fresh stamping ?

Please advice me in this regards.

Regards,
Mahesh