Hi Debidatta,
No, you can’t use instrumental variable which is correlated with dependent variable because the purpose of using instrumental variable is that to include the omitted variables impact which you cannot measure. As there is no measurement for the variable thus it can’t be correlated with dependent variable directly. Instead via a third variable known as policy variable this correlation could be present i.e. instrumental variable will be related with policy variable and policy variable with dependent variable but not instrumental and dependent variable.