Just visited the store, believe it or not their C8 display unit is missing. According to him they had some issue with the frame and sent it back. Add to that they have an airtel connection (my image retention was an airtel channel). The sales person at the store has been cordial and helpful.
The service engineer (very knowledgable) just visited and took pictures of the pixels and asked for the image retention image. He said he will put in a request and LG will call me to confirm the issue and probably replace the TV (He said I should tell them no if they ask for the panel replacement option). The replacement (if) will come from LG itself and not the dealer. He also agreed to the opinion that this was probably sold to the dealer on 11th May, he then displayed it and used it for 36 hours (probably looking at the star sports channel as seen on the image retention) and then sold it off to us despite us specifically telling him we want a fresh piece and not the one displayed in store.
LG has been prompt about this but the dealer has been very sketchy to say the least.
Also I got the refer a friend vouchers with this model (Their expiry date was around 1st May) which again shows the something fishy/weird on the dealer part or LG part. My guess again would be, the dealer put it in with the repacking of his demo unit. For the other offers like giftonair and fly and buy, I think I will probably hold it off till the replacement comes.