On a Thursday morning in Gujarat, officials from the Directorate of Revenue Intelligence (DRI) arrested Basharat Khan, a prominent luxury car dealer based in Hyderabad, for his alleged role in a multi-crore customs duty evasion scam. The arrest, sanctioned by the Chief Judicial Magistrate Court in Ahmedabad, followed DRI’s detection of over ₹25 crore worth of duty evasion.
Khan, the proprietor of the ‘Car Lounge’ showroom in Hyderabad, is accused of importing more than 30 luxury cars—including Rolls-Royce, Lexus, Hummer EV, and Cadillac Escalade—while undervaluing invoices and misrepresenting the vehicles’ worth to customs officials.
A Global Smuggling Route and an Elaborate Modus Operandi
According to DRI officials, the scam was far from a local affair. High-end cars were allegedly imported from the United States and Japan, rerouted via Dubai or Sri Lanka, and modified from left-hand drive to right-hand drive to meet Indian standards. These modifications were done before entry into India, allowing the fraudsters to file fabricated documentation and undervalued invoices.
In many instances, the declared import value was reduced by almost 50 percent using fake bills. Investigators found that Khan alone was responsible for ₹7 crore in duty evasion through the import of eight such vehicles.
The finance ministry noted that other importers operating out of Mumbai, Pune, Delhi, Ahmedabad, and Bangalore are also under DRI investigation. These firms allegedly facilitated similar fraudulent imports, forming a broader network now under federal scrutiny.
The Power of Connections and the Politics of Evasion
What further complicates the case is Khan’s reported network of political connections. According to NDTV’s reporting, Khan’s success in the luxury car space was partly bolstered by high-profile buyers who paid in cash to sidestep tax implications. Dr. Ahmed, Khan’s business partner, allegedly stored several high-value vehicles at his farmhouse, helping maintain secrecy and shield assets from immediate law enforcement detection.
Investigators believe the political shielding and financial clout allowed Khan’s network to operate undisturbed for years. As the web unravels, officials have confirmed that both importers and end users of the luxury cars—those on whose behalf the imports were made—are under investigation.
Looking Ahead: Cracking Down on India’s Luxury Smuggling Rings
This arrest marks only the beginning of a far-reaching investigation. The finance ministry confirmed that the ₹25 crore fraud may just be the tip of the iceberg, with more arrests and seizures likely in the coming days.
DRI’s operation underscores growing concerns about white-collar financial crimes leveraging international logistics loopholes, digital platforms, and high-value asset laundering through luxury imports. As enforcement tightens, this case could become a landmark in how India tackles elite-level customs frauds.