Indian officials busts luxury car import scam; Rs 25 crore tax evasion uncovered
Business & Economy: The Directorate of Revenue Intelligence (DRI) revealed that over 30 luxury vehicles were imported into India by misdeclaring their value.
Indian authorities have uncovered a sophisticated luxury car smuggling racket involving the undervaluation of high-end vehicles to evade customs duties, leading to losses exceeding ₹25 crore ($2.9 million).
The Directorate of Revenue Intelligence (DRI) revealed that over 30 luxury vehicles were imported into India by misdeclaring their value using falsified documents.
According to the finance ministry, the imported vehicles included premium models such as the Rolls-Royce, Hummer EV, Cadillac Escalade, Lexus, Toyota Land Cruiser, and Lincoln Navigator.
These cars were initially shipped from the United States and Japan to intermediary locations like Dubai and Sri Lanka, where they underwent conversions from left-hand drive to right-hand drive—a requirement for Indian roads.
Once modified, the cars were imported into India at significantly undervalued prices, sometimes by as much as 50%, enabling importers to evade substantial customs duties. Investigators found that fabricated invoices and other documents were used to support the false declarations at Indian ports.
Nationwide operation and investigation
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The DRI has already arrested a Hyderabad-based importer, identified as one of the key players in the scam. He is accused of importing at least eight such vehicles, resulting in an estimated ₹7 crore ($820,616) in customs duty evasion. He has been remanded to judicial custody by the Chief Judicial Magistrate’s Court in Ahmedabad.
The smuggling ring is believed to involve importers operating across major Indian cities, including Mumbai, Pune, Ahmedabad, Bangalore, and Delhi. Several other importers and individuals who were the end-users of these luxury vehicles are currently under the DRI’s scanner.
It is speculated that the operation exploited regulatory loopholes in India’s high-duty import structure by using third-country routing and sophisticated documentation fraud. Authorities are intensifying scrutiny of similar vehicle imports to detect any further evasion.
The crackdown comes as the Indian government continues efforts to strengthen customs enforcement and close gaps in import regulations. The DRI is expected to pursue further legal action against those involved and recover the evaded duties.
This case highlights the increasing sophistication of customs fraud in high-value segments and the critical role of inter-agency intelligence in disrupting such operations.
(With inputs from agencies)