The name of Hyderabad-based businessman Basharath Khan Patan has resurfaced in the ongoing investigation into a ₹100 crore customs fraud, revealing a network of high-profile clients, including senior politicians, who purchased imported luxury vehicles from him.
Patan, owner of ‘Car Lounge’, was previously arrested by the Directorate of Revenue Intelligence (DRI) Ahmedabad. In May 2025, the DRI received intelligence that luxury cars were being imported into India at nearly 50 percent of their declared value, with deliberate under-invoicing and misdeclaration at Indian ports.
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Findings from the Investigation
- According to intelligence reports, S K Car Lounge imported eight high-end vehicles — 1 Rolls-Royce, 2 Lexus models, and 5 Toyota Land Cruisers.
- The remand report, accessed by NewsMeter, contains Patan’s confession:
- Land Cruiser 300 undervalued by ₹20,91,000
- Rolls-Royce Cullinan undervalued by ₹1,24,45,530
- Lexus LX-500D undervalued by ₹50,08,608
Patan admitted that all imported cars had been intentionally undervalued. These transactions were routed through ICD Tughlakabad (Delhi) and Customs House Chennai (Tamil Nadu).
Political Connections and VIP Clients
The investigation also revealed that Patan supplied cars to prominent politicians, sometimes providing vehicles “for use” without formal sale. His showroom is located on Raidurg-Gachibowli Road, Hyderabad.
Sources say Patan initially sold regular vehicles, but over time, leveraging political and social networks, he expanded into high-end luxury cars. Many vehicles were sold to VIP clients, and some were lent to politicians across party lines.
Analysts note that in such cases, political networking and social credibility are often used by businessmen to shield operations and facilitate illicit transactions.
Financial Patterns and Tax Evasion
Customers frequently paid cash, bypassing tax regulations and potentially converting black money into legitimate funds. The DRI reported that Patan deliberately misdeclared car values, evading customs duties amounting to ₹7 crore. He faces prosecution under Sections 135(1)(a) and 135(1) of the Customs Act.
Background
Patan, from Vijay Nagar Colony, Nampally, came from a middle-class family. By leveraging political contacts and hosting high-profile parties, he expanded his business rapidly and established a strong position among elite circles.
Experts say the objective in cases like these is clear: to use high-value imports for personal enrichment, political influence, and network consolidation.
Legal and Economic Implications
The investigation into Patan is ongoing, with cases pending in court. Analysts warn that uncovering such a network could have far-reaching legal consequences for other potential victims and political figures involved.
