Hyderabad Car Dealer Held for ₹100 Crore Customs Fraud Involving High-End Cars

A Hyderabad-based luxury car dealer, Basharath Khan, has been arrested in Gujarat for allegedly evading customs duties worth approximately ₹100 crore by undervaluing high-end imported vehicles. According to investigative findings, he fabricated documents to import luxury cars from countries such as the United States and Japan.

The Directorate of Revenue Intelligence (DRI) stated that Basharath Khan operated a showroom under the name "Car Lounge" in Hyderabad. Officials reported that Khan used forged documents and undervalued invoices to avoid paying the actual customs duties.

Preliminary investigations revealed that the luxury vehicles were originally imported from the United States and Japan. These cars were then transported to Dubai or Sri Lanka, where their steering systems were converted from left-hand drive to right-hand drive. Following these modifications, the vehicles were brought into India using forged documentation.

Authorities discovered that at least 30 high-end vehicles had been imported through this illicit method. The models involved include premium brands such as Hummer EV, Cadillac Escalade, Rolls-Royce, Lexus, Toyota Land Cruiser, and Lincoln Navigator.

Basharath Khan, who has operated the luxury car showroom in Hyderabad for the past decade, is alleged to have personally imported eight such vehicles, evading customs duties exceeding ₹7 crore. Officials further identified Dr. Ahmad, a business associate of Khan, as an accomplice in the operation. Dr. Ahmad reportedly housed these illegally imported vehicles at his farmhouse.

Investigations also revealed that many customers who purchased vehicles from Basharath Khan made cash payments to evade taxes. The import network linked to this case is said to extend across Hyderabad, Mumbai, Pune, Ahmedabad, Bengaluru, and Delhi.

Basharath Khan has been placed under judicial custody as the investigation continues, officials confirmed.