Luxury Car Fraud: Hyderabad Dealer Arrested In Rs 100 Crore Scam

A luxury car dealer from Hyderabad has been arrested in Gujarat on charges of involvement in a customs duty evasion fraud. The accused was allegedly involved in the illegal importing of high-end vehicles, which amounted to a total of Rs 100 crore in customs duty, NDTV reported. Based on reports, Basharat Khan, the proprietor of the 'Car Lounge' showroom, had a significant role in undervaluing luxury cars imported in India from other countries. As per the information shared by the Directorate of Revenue Intelligence (DRI), Khan undervalued the cars by using fake invoices and documents.

Initial inquiries showed that the high-end cars were obtained from nations like the United States and Japan. They were redirected through Dubai or Sri Lanka, where the cars were modified from left-hand drive to right-hand drive to comply with Indian road standards. Subsequently, the vehicles were brought into India using counterfeit documentation.

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In the investigation, the officials have identified illegal import of at least 30 high-end vehicles. The list of models includes some of the rare models in the country, including a Rolls-Royce, Cadillac Escalade, Hummer EV, Lincoln Navigator, Toyota Land Cruiser, and a Lexus.

Khan, who has operated a luxury car showroom in Hyderabad for the last decade, was solely blamed for importing eight luxury vehicles, leading to a customs duty evasion exceeding Rs 7 crore. Reports indicate that his business partner, Dr. Ahmed, assisted him by keeping several imported luxury cars at his farmhouse.

According to DRI officials, Khan's business flourished after he established numerous influential political connections and sold high-end vehicles to these clients. It is said that many of these customers paid Khan in cash to evade taxes. Officials stated that the import network extends across Hyderabad, Mumbai, Pune, Ahmedabad, Bengaluru, and Delhi.

Khan has been placed in judicial custody, and an ongoing investigation is in progress, they noted.