Based on specific intelligence inputs, the DRI found that luxury vehicles were imported into India at nearly 50 per cent of their value through deliberate under-invoicing and misdeclaration at Indian ports
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Hyderabad: The Directorate of Revenue Intelligence (DRI), Ahmedabad Zonal Unit, had reportedly arrested city-based businessman, Basharath Khan, the owner of Car Lounge showroom in Gachibowli, on charges of customs duty evasion of nearly Rs 25 crore in the import of high-end luxury cars.
Based on specific intelligence inputs, the DRI found that luxury vehicles were imported into India at nearly 50 per cent of their value through deliberate under-invoicing and misdeclaration at Indian ports.
Basharath was picked up by the DRI officials on Tuesday and produced before a special court in Ahmedabad. DRI officials suspect the fraud would be around Rs 100 crore.
DRI officials found that the vehicles originally sourced from the USA and Japan were first shipped to Dubai or Sri Lanka for conversion from left-hand drive to right-hand drive (RHD) and other modifications. After these alterations, the cars were imported into India using falsified documents that significantly undervalued the vehicles, thereby evading substantial customs duties.
The probe revealed that over 30 luxury vehicles, including the Hummer EV, Cadillac Escalade, Rolls-Royce, Lexus, Toyota Land Cruiser, and Lincoln Navigator, were imported using this method. Importers involved in the scheme are located in Hyderabad, Mumbai, Pune, Ahmedabad, Bengaluru, and Delhi, with total duty evasion estimated at over Rs 25 crore.
It is learnt that other importers and actual users of the imported cars, on whose behalf these cars were imported, are under the scanner of the DRI.
