ED raids Kerala, TN locations linked to Dulquer, Prithiviraj in luxury cars smuggling

The financial crimes probe agency has launched a foreign exchange management act (FEMA) violation probe in the matter based on the Customs department’s ‘operation Numkhor’ in September, in which the latter had recovered 36 luxury cars from affluent individuals.

Among the locations searched by the federal agency on Wednesday were vehicle owners, auto workshops, and traders in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam and Coimbatore (Tamil Nadu).

“The action is being taken under the FEMA in a recent case unearthed by the Customs Preventive department related to alleged smuggling of luxury vehicles and unauthorised foreign exchange dealings,” said an officer, who didn’t want to be named.

The ED officer said the searches are based on inputs about a syndicate engaged in illegal import and registration of high-end cars such as Land Cruiser, Defender, and Maserati through the India-Bhutan and India-Nepal routes.

“Preliminary findings point to a Coimbatore-based network that used forged documents (purporting to be from Indian Army, US Embassy, and MEA) and fraudulent RTO registrations in Arunachal Pradesh, Himachal Pradesh and some other states,” this officer said.

The vehicles were later sold to high-net worth (HNI) individuals, including film personalities, at undervalued prices, said a second officer.

The agency suspects that the case bears prima facie violations of sections 3, 4, and 8 of FEMA that involves unauthorized foreign exchange transactions and cross-border payments through hawala channels.

Under Operation Numkhor, which in Bhutanese means ‘vehicle’, the Cochin Customs on September 23 carried out statewide raids in Kerala and seized 36 premium vehicles which were allegedly smuggled from Bhutan.

According to a statement issued by the Customs on September 23, many of these vehicles, brought illegally to India and sold in the country, were also used to smuggle gold and drugs.

“If they can smuggle cars, gold and narcotics like this, then they can bring anything else. Therefore, it is a major threat to national and economic security of the country,” Commissioner of the Customs Preventive Commissionerate in Kochi, T Tiju, said on September 23.

The cars, according to Tiju, were brought into India either in completely knocked-down condition or inside containers or driven into the country in the guise of tourist vehicles.

“After the vehicles are brought to India, they are registered in different parts of the country using carefully forged documents. Significantly, the Indian Army’s and foreign embassies’, including the US Embassy’s, name, seal and their insignia are forged to register these vehicles,” Tiju said on September 23.

It is suspected that there are 100-150 such vehicles in Kerala alone, of which 36 had been seized.

Salmaan had approached the Kerala high court for release of his vehicle (a Defender). According to him, the vehicle was shipped by the International Committee of the Red Cross to the ICRC Regional Delegation in New Delhi.

In his petition, the actor stated that he was under the bona fide belief that the vehicle had valid ownership and registration with the motor vehicle authority, and there was nothing to make him suspect its validity.

The actor claimed that Customs officials refused to examine the vehicle’s documents handed over to them and carried out the seizure in a hasty and arbitrary fashion.