NuzTube INDIA
Ahmedabad, May 13 — The Directorate of Revenue Intelligence (DRI) has arrested a prominent Hyderabad-based importer in connection with a massive luxury car undervaluation scam, leading to judicial custody by the Chief Judicial Magistrate (CJM) Court in Ahmedabad.
According to the DRI, an extensive investigation revealed a fraudulent import operation involving high-end luxury cars from the United States and Japan. These vehicles were allegedly undervalued by up to 50% to evade customs duties, using fabricated documentation and mis-declared import values.
The imported luxury cars, including models such as the Hummer EV, Rolls Royce, Cadillac Escalade, Lexus, Toyota Land Cruiser, and Lincoln Navigator, were first routed through Dubai or Sri Lanka. There, they were converted from Left-Hand Drive (LHD) to Right-Hand Drive (RHD) before being brought into India under misrepresented values.
The duty evasion is estimated at over ₹25 crore, with the Hyderabad-based importer alone accused of evading more than ₹7 crore across eight high-value vehicles. The importer has been booked under Section 135 of the Customs Act, and several others from Mumbai, Pune, Ahmedabad, Bangalore, Delhi, and Hyderabad are also under investigation, including the end users of the vehicles.
While the Union Budget 2025-26 reduced customs duties on luxury cars above $40,000 from 125% to 70%, the imports under scrutiny date back to 2024, meaning they are liable under the previous, higher duty slabs.
The case is unfolding amid a broader global tariff tension, sparked by U.S. trade policies under former President Donald Trump.
