In case it's not clear, IndiaPlaza are not an authorized distributor of the Kindle Fire. No, they're buying up Amazon's new tablet at retail and reselling it in India. Now, their surcharge might seem a little high, but it also covers import duties, shipping, and other costs.
This is pretty much what I expected to happen when the tablet-killing Kindle Fire launched last month. Amazon were quite clear that the Kindle Fire and all the content you can buy from it was only available in the US. Of course, that kind of statement is better regarded as a challenge to the ingenuity of gadget lovers, and you should never have expected it to stick.
On the other hand, perhaps this is why Amazon spun the Kindle Fire off into another company (I'm being sarcastic).
While I doubt Amazon are all that pleased with this reseller, I won't criticize. I've had to rely on resellers and helpful friends so I could get around unreasonable restrictions like this, and it's just one of those things you do if you want a gadget.
I would expect that a fair number of people are going to get this grey-market Kindle Fire, and I wish them the best of luck. But is it worth it? All of the content sold that Amazon sell on the Kindle Fire is limited to just the US market. Getting around the restrictions will involve lying to Amazon and then hoping that they don't double check your IP address.
Is it worth the hassle?