Just came back from Honda Gateway, they have balanced all wheels under warranty. I was informed that both tyres and rims are under warranty which was a great relief
Two of the rims received more than 30gm weights, which was really disappointing. However, the staff was really helpful. They even took me to a Honda Atlas Engineer present there for some visit. He acknowledged that they are receiving complaints regarding the steel rims. He said (with a wink) that if I was not satisfied even after balancing, they will find another option for me .
The rims seem smooth after balancing till about 100 Km. I will check further for a day or two, and then post my feedback here.
Again, really disappointed with Honda City Sales for misguiding me saying that Tyres and Rims are not under warranty.