Directorate of Revenue Intelligence Uncovers Large-Scale Customs Duty Evasion
The Directorate of Revenue Intelligence (DRI) has exposed a significant case of undervaluation in high-end luxury car imports, involving multiple importers across major Indian cities. According to specific intelligence received by the DRI, these luxury cars were being imported with values declared 50% lower than actual prices, resulting in substantial customs duty evasion.
The modus operandi involved shipping these vehicles from countries like the US and Japan to Dubai or Sri Lanka, where they were converted from left-hand drive to right-hand drive and underwent other necessary modifications. The vehicles were then imported into India with falsified documents mis-declaring their import value.
The investigation revealed that over 30 luxury vehicles, including models like Hummer EV, Cadillac Escalade, Rolls Royce, Lexus, Toyota Land Cruiser, and Lincoln Navigator, were imported using this fraudulent method. The estimated duty evasion exceeds ₹25 crore, with importers from Hyderabad, Mumbai, Pune, Ahmedabad, Bangalore, and Delhi implicated in the scam.
One prominent importer based in Hyderabad, who imported eight high-end luxury cars evading customs duty worth over ₹7 crores, has been arrested and taken into judicial custody by the CJM Court, Ahmedabad. The DRI is currently investigating other importers and the actual users on whose behalf these cars were imported.
This crackdown demonstrates the DRI’s commitment to curbing large-scale customs duty evasion and maintaining the integrity of India’s import regulations.
