The Enforcement Directorate on Wednesday conducted searches at 17 locations across Kerala and Tamil Nadu as part of an ongoing investigation into the alleged smuggling of high-end pre-owned luxury cars and unauthorised foreign exchange transactions.
The raids were carried out under the Foreign Exchange Management Act (FEMA) by the agency’s Kochi Zonal Office.
Raids Target Residences Of Film Stars & Car Traders
The searches covered the residences and establishments of actors Dulquer Salmaan, Prithviraj Sukumaran, and Amit Chakkalakkal, as well as those of certain vehicle owners, automobile workshops, and car dealers in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, and Coimbatore.
These raids follow the September 23 operations by the Customs (Preventive) Commissionerate, Kochi, which conducted searches at over 30 locations, including the homes of several film stars. During that drive, 37 high-value second-hand luxury cars, suspected to have been smuggled from Bhutan, were seized. In the following days, three additional vehicles were recovered.
Syndicate Behind The Smuggling
“The searches were based on inputs exposing a syndicate engaged in the illegal import and registration of luxury cars such as Land Cruiser, Defender, and Maserati through Indo-Bhutan/Nepal routes,” the ED said in a statement.
Preliminary findings point to a Coimbatore-based network that allegedly used forged documents purportedly issued by the Indian Army, the US Embassy, and the Ministry of External Affairs. These fake documents were used to secure fraudulent vehicle registrations from Regional Transport Offices (RTOs) in Arunachal Pradesh, Himachal Pradesh, and other states.
The illegally imported vehicles were later sold to high-net-worth individuals, including prominent film personalities, at undervalued prices, according to the ED release.
FEMA Violations & Hawala Links
The ED initiated action after detecting prima facie violations of Sections 3, 4, and 8 of FEMA, which relate to unauthorised foreign exchange dealings and cross-border hawala transactions. The agency is now tracing the money trail, beneficiary network, and the flow of foreign funds involved in the operation.
Earlier, the Customs Department launched Operation ‘Numkhor’ — meaning vehicle in the Bhutanese language — targeting vehicles suspected of being illegally imported. Acting on data from the Ministry of Road Transport and Highways, officials flagged 150–200 vehicles showing registration irregularities linked to the same Coimbatore-based racket.
During these operations, multiple vehicles belonging to Dulquer Salmaan and Amit Chakkalakkal were seized. While officials also visited Prithviraj Sukumaran’s residence in Kochi, no vehicles were taken from his property.
Following the seizures, Dulquer Salmaan has approached the Kerala High Court seeking the release of his vehicles. Meanwhile, both the ED and Customs continue their parallel investigations to identify the key players and financial channels behind the racket.
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