Buying phones from the US - Where's the catch?

As you know, in the US and Europe, phones are available on contract basis, vendor locked, so the up front payment is very cheap, 5000 or 8000 rupees or so.
So I tell a relative or friend living out there to buy an expensive phone, for this price, and parcel it to me here, or bring it with him when he's coming. Then I get it unlocked.

I essentially have a 20/30k phone for Rs 5000.

Where's the catch? Why is this not possible?
As far as I know, people do this. But I don't know how. There has to be something which prevents this!
 
As you yourself said, it is under a contract registered to the person buying the phone. So even if you bring the phone here, your friend or relative have to continue paying the monthly rental until the end of the contract. Or he can end the contract by paying an early termination fee which again will be equivalent to the actual price of the phone.
 
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