₹100 Crore Scam: A Hyderabad-based luxury auto dealer was detained in Gujarat on Thursday on suspicion of participating in a customs duty evasion scam worth around Rs 100 crore that was connected to the unlawful importation of expensive cars.

According to officials, Basharat Khan, the owner of the “Car Lounge” shop, was mostly responsible for the undervaluation of luxury vehicles brought from overseas, often selling them for up to 50% of their true value. The Directorate of Revenue Intelligence (DRI) claims that Khan avoided paying excessive customs charges by using fictitious documents and low-value invoices.

Luxury Cars Smuggled:

Preliminary research shows that the premium cars originated from countries including Japan and the United States. To comply with Indian traffic regulations, the dealers diverted the vehicles through Dubai or Sri Lanka, where they converted the cars from left-hand drive to right-hand drive. Next, they used fake documents to illegally import the cars into India. So far, authorities have uncovered at least thirty luxury vehicles involved in the scam, including the Lincoln Navigator, Rolls-Royce, Lexus, Toyota Land Cruiser, Cadillac Escalade, and Hummer EV.

Khan has operated the upscale car dealership in Hyderabad for the past ten years. During this time, he personally imported eight of these cars, evading customs duties exceeding Rs 7 crore. Additionally, the ‘Car Lounge’ showroom included a workshop where technicians carried out major vehicle modifications and improvements.

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According to reports, Dr. Ahmed, Khan’s business partner, helped him by storing a large number of exotic imported cars at his farmhouse. DRI officials said Khan’s business flourished after he sold expensive cars to clients and built numerous powerful political connections. Reports indicate many clients paid Khan in cash to evade taxes. Officials confirmed the import network spans Bengaluru, Delhi, Hyderabad, Mumbai, Pune, and Ahmedabad. They also stated that investigations continue and that authorities have placed Khan in judicial custody.

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