Shetty of Lorraine's Racing overcame a strong field that included a host of former champions amid tough conditions to emerge victorious.
In a field of 54 riders, the Mumbai rider rode judiciously over the dirt tracks to win the gruelling 35-km rally in 25 minutes and 15 seconds in penalties.
In the process he left former champions Syed Asif Ali, Shamim Khan, Rustom Patel, Manjeet Singh Bassan and Avtar Singh in the cold.
Pune's Pinkesh Thakkar of Team Ceat, also riding an Aprilia SR 150, was second, clocking 25 minutes and 43 seconds, and defending champion Syed Asif Ali of TVS Racing, astride a TVS 4SXR 150, was third with the time of 25 minutes and 44 seconds.
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Heavy rain over the last few days made riding on the gravel-laden, winding course dicey. Riders had to exercise extreme caution and control while negotiating steep inclines, hairpin bends and water-logged stretches.
Some of them took a tumble or two.
Forty-nine of the 54 riders completed the race. Of 22 first-timers, 18 could finish it.