I own the same book and was similarly surprised when I read that instruction, but in the section on ingredients, the author does mention a particular variety of onions called pink onions. The mention is on pg. 32, and there is a picture of a pink onion on the upper left of pg. 34.
Here's an excerpt from pg. 32:
"The longer the onions are fried, the browner they will get and the deeper the color of the curry will be... When the onions are fried until only light pink in color, they will impart a sweetish taste to the curry. Certain varieties of onion, like Spanish onions, are too sweet to be appropriate for curry-making. The most appropriate from the taste point of view are the French and the small pink English."
From 50 great curries of india
I've never seen pink onions in any of the local markets (in northwestern US), I used white onions and sauteed them just to the point of browning. The recipe turned out fine, but it's a lot of onion. (The recipe calls for 2 large onions, finely chopped. It's a recipe that produces 2 servings.) Personally, I'd go a little lighter on the amount of onion or use yellow onions (despite the author's recommendation against Spanish onions), but that is just personal preference from a Western palate.
Note: it looks like the current printing of the book is different from the one I own, so the page numbers I cite may be off, but if you search inside the book (on Amazon) for "pink onion" you can see the page I've cited and the picture of what the author calls a pink onion.
Tallow does not need to be refrigerated and can last a year or longer. I would not worry greatly about decomposition, but oxidation can be a problem. Make sure to store it in an airtight container and you shouldn't have a problem.
Best Answer
Unless he actually canned the sauce (processing the jars in boiling water bath or pressure canner as appropriate) and was working from a trusted recipe, no, this is definitely not safe.
It takes processing like this to make canned goods shelf stable. And the recipe is important too; for example if the pH isn't low enough it's not safe to use the boiling water bath method. This isn't just because of the onion, it's the sauce as a whole.
The risk here isn't just that the food may spoil. It's that something unnoticeable will grow in there, like botulism, and it could make you extremely sick or even kill you.