How the Alleged Gray-Market Scheme Worked
Only One Authorized Distributor
According to Haldiram India Pvt. Ltd., only Reshmi’s Group Inc. holds the license to distribute its products in Washington, Oregon, Idaho, Alaska and Montana. The lawsuit claims Punjab sidestepped this restriction by sourcing snack products meant for sale only in India, which are not approved for U.S. distribution.
The ‘Not for Export’ Discovery
The case ignited in July 2024 when Reshmi employees spotted a box of Haldiram’s snacks stamped “not for export” inside a customer’s vehicle. When questioned, the customer allegedly said the items came from Punjab.
A deeper investigation revealed more alarming details: Haldiram’s says Punjab covered “not for export” labels with stickers, altered nutrition information, and redistributed the products as though they were legitimate U.S.-market goods.
Similar packages surfaced at two additional Washington retailers, further suggesting a regional gray-market network supplying mislabeled snacks.
