Dear Tenhut, I think you have faced the same problem what I have faced
I suggest to everybody do not buy a illegal bike if you are even getting half of the market price. Once you caught you will end up paying four times of the amount and lots of hassle and mental pressure

Once of my friend has been slapped up by DRI officials. He was unable to produce proper documents for his bike and at last he paid 9.25 of duty and still case is going on.

to be honest I havent faced any such problems at all. But I got plenty of friends who had to face the brunt of both their own expectations and DRI. The problem when buying a bike from the streets isnt DRI alone. Its the owers expectations. Have you come accross owners who proudly thump their chest and say it loud "Mine is legal" ?
Well..when they go to bed alone they know their bike isnt really clean nor legal.
Your problems begin the moment you expect a non showroom bike to be as clean as a showroom bike. It WILL NEVER be that. Just buy one knowing its illegal and ride it. Chances of u getting caught are 50-50.
Thats the risk apetite that one needs to have in order to go for these bikes. I am never suggesting dont buy a bike from the streets. If you got the risk apetite go for it. I am myself contemplating buying a 600 for the track next year...but I will not even bother to ask for its papers...

Theres an even bigger reason why one should think twice before going in for an illegal bike. Lets assume u got enough risk apetite and go in for an R1. You ride it for a month at the end of which you crash it. In the crash you ended up hurting yourself AND SOMEONE ELSE.
Now in the above scenario you better not survive your injuries. Cause if you do and the other person hasnt then you are in for nothing less than a handsome jail time. You killed someone with an illegal vehicle. OMG not even Rajnikantha can save you now..

Think about it OP.

+1 to Tenhut's last post. And thanks for the terminology man, even I have been thinking it as bill of landing. Lading is right.

And I agree with gsferrai's statement. If people have 7 lakhs cash, why can't they use that as a down payment? You will reduce your EMI by 50%!!! I realize that its going to cost another 7 lakhs more, but if you are really passionate about buying your DREAM, then imagine how you would be hurt if you paid 7 lakhs for an illegal one, only to have the DRI nab it?

Besides, with the influx of even 600 cc bikes into the market now, a 7 lakh bike is well affordable, say, like the hyosung 650 R or the ninja 600. Besides guyz, the legal litre class bikes have been in the indian market since 2008. After a couple more years, you can still buy these litre class bikes after a reasonable depreciation, well under a 6 to 7 lakh budget!!!

The good thing is that, for guyz like us with limited budgets, our dreams are only a couple of years away. Which makes it all the more good thing to avoid buying an illegal bike!