221g white slip for H1B, passport & petition retained

Dear All,

I appeared for H1B interview in last week of July 2014 in New Delhi. I was issued 221g (White colour) saying 'Visa refused". It further says to submit additional documnets related to employer to proceed further. It asks to submit docs at VFS office. My questions -

What they used word ‘refused’ ?

Is retaining passport & petition normal ?

Any guesses how much time they may take once I submit docs to them?