HYDERABAD: Hyderabad-based luxury car dealer Basharat Khan, owner of the ‘Car Lounge’ showroom, has been arrested in Gujarat for allegedly orchestrating a massive ₹100 crore customs duty evasion racket involving the illegal import of high-end vehicles.
According to the Directorate of Revenue Intelligence (DRI), Khan systematically undervalued imported luxury cars — in some cases by nearly 50% — to dodge hefty import duties. The cars, primarily sourced from the US and Japan, were rerouted through Dubai or Sri Lanka, where they were converted from left-hand drive to right-hand drive to comply with Indian norms. Fake documents and undervalued invoices were then used to bring them into India.
So far, officials have uncovered at least 30 luxury vehicles smuggled under the scheme, including models such as the Hummer EV, Cadillac Escalade, Rolls-Royce, Lexus, Toyota Land Cruiser, and Lincoln Navigator. Khan is accused of individually importing eight such vehicles, evading over ₹7 crore in duties.
The ‘Car Lounge’ showroom also featured a workshop for vehicle modifications. DRI officials stated that Khan expanded his operations rapidly after forging ties with several influential political figures, many of whom purchased cars from him using unaccounted cash.
His partner, Dr Ahmed, allegedly stored multiple imported vehicles at his farmhouse, further aiding the operation. The illicit import network spans across Hyderabad, Mumbai, Pune, Ahmedabad, Bengaluru, and Delhi.
Khan has been placed in judicial custody as investigations continue.