DRI Cracks Down on Luxury Car Import Fraud

The Directorate of Revenue Intelligence (DRI) has uncovered a major fraud involving the undervaluation of high-end luxury cars to evade customs duties. A Hyderabad-based importer has been arrested, revealing evasion exceeding Rs 25 crore. The imported cars were modified in Dubai/Sri Lanka before entering India.

The Directorate of Revenue Intelligence (DRI) has reported a significant breakthrough in uncovering a large-scale fraud in the importation of high-end luxury cars. According to a statement from the Ministry of Finance, these vehicles were being brought into India by significantly undervaluing their import costs by as much as 50 percent, allowing importers to circumvent the mandatory customs duties.

The cars, transported initially from the USA or Japan to Dubai and Sri Lanka, underwent modifications—such as altering their drive from left-hand to right-hand—before being imported to India with falsified documentation. This sophisticated modus operandi initially went undetected, but the DRI's in-depth investigations have led to the arrest of a key suspect based in Hyderabad, who is accused of importing eight such luxury vehicles, resulting in a reported customs duty evasion of more than Rs 7 crore. The CJM Court in Ahmedabad has since placed the implicated individual in judicial custody.

Officials reveal that over 30 luxury cars, including prestigious brands like Hummer EV, Cadillac Escalade, Rolls-Royce, Lexus, Toyota Land Cruiser, and Lincoln Navigator, have been brought into the country through these fraudulent methods. The widespread network of evasive importers spans across cities including Hyderabad, Mumbai, Pune, Ahmedabad, Bangalore, and Delhi. Currently, the DRI is probing further, keeping a close watch on other potential importers and end-users involved in this sizable evasion plot, which reportedly surpasses INR 25 crore.

(With inputs from agencies.)