It's compulsory, as it's not a Trekking Peak. I'm not familiar with the area, to say if you can do the peak illegally (probably) but basically if you pay the peak fee then you'll be paying for an LO as well.
India has made some progress with these new peak fees, but the LO is still a leftover problem - but a hard one to get rid of as they provide jobs for cronies in the administration and the military etc. For a two man team on a small cheap peak like that, the LO is a big cost and hassle. On a bigger peak, divided between a bigger team, it's not so bad.