BD players are not region free. There are only a handful of players that can be made region free by end user. Indian dealers do not understand region free. They say anything. They are not cheating - they are plain misinformed. Your dealer cannot give you a "replacement" so to speak because the replacement may also be region locked. Best is to test it beforehand.
Unlike DVDP, the BDP is much more complex and the process of making it region free are more involved. There are two methods for making the BDP region free:
Option 1 - Hardware chip mod: Involves buying a hardware circuit/chip that has to be soldered to ride piggy-back on the main PCB. The mod is available from various sources and costs around 75~120 plus shipping (sometimes) and customs duty. Requires mid-level soldering skills. Best to be done by DIY experts or a technicial.
Advantages: Permanent. Protected from firmware updates. Region change can be done by original (factory) remote of the BDP.
Disadvantages: Cost. Requires soldering skills. Available for very few manufacturers/players.
Option 2 - Firmware update: Involves downloading a modified firmware. For Panasonic BDPs, firmware can be gotten via donation of 30 plus Paypal charges. Firmware update is easy - download, burn to CD-R, pop the CD-R in BDP and "Bob's your uncle". Toshiba BDX-3200KB is another model for which (free) firmware exists. Region change is via official (factory) BDP remote.
Advantages: Free for Toshiba and low cost for Panasonic. No expertise required other than downloading and buring a CD-R.
Disadvantages: Temporary - if firmware is updated (via official means), you will loose region free capability. Available for Panasonic BDPs (all) and Toshiba BDX-3200KB only (and maybe a few more sporadic models).
There is a third option. One can buy region free modded players from certain websites such as worldelectronics.com, 220-electronics.com, etc.