Hyderabad Luxury Car Showroom Owner Basharat Khan Arrested in ₹100 Crore Customs Duty Fraud

The Directorate of Revenue Intelligence (DRI) has arrested Hyderabad-based businessman Basharat Khan, owner of the luxury car showroom “Car Lounge” located on Raidurg Road in Gachibowli, for allegedly committing a customs duty fraud amounting to nearly ₹100 crore.

Based on specific intelligence inputs, DRI officials revealed that high-end vehicles were imported into India by under-invoicing their actual value by almost 50%, thereby evading hefty customs duties. The fraud was executed using fake documents and manipulated invoices. Khan was arrested in Surat and presented before a special court in Ahmedabad.

Political Links and Lavish Sales Network

Basharat Khan has been in the car showroom business in Hyderabad for the past decade. Initially dealing in mid-range vehicles, he gradually expanded into the luxury segment, reportedly leveraging his political connections to gain access to a VIP clientele. He is known to have hosted extravagant parties for his high-profile customers, including politicians and celebrities.

Sources say many buyers made payments in cash to avoid taxes. His associate, Dr. Ahmed, is also alleged to be involved. A farmhouse was reportedly used to store some of the imported vehicles.

Sophisticated Import Route via Dubai and Sri Lanka

Investigations have revealed that the cars were originally purchased in the United States and Japan, then routed through Dubai or Sri Lanka, where they were converted from left-hand to right-hand drive. The vehicles were then shipped to India using forged documentation and undervalued invoices.

So far, the DRI has traced at least 30 high-end vehicles, including:

• Hummer EV
• Cadillac Escalade
• Rolls-Royce
• Lexus
• Toyota Land Cruiser
• Lincoln Navigator

The import network spans Hyderabad, Mumbai, Pune, Ahmedabad, Bengaluru, and Delhi.

7 Crore Duty Evasion on Just Eight Cars

According to DRI officials, Khan is specifically accused of importing eight high-value cars, causing a loss of approximately ₹7 crore in customs duty. A local court has remanded him to judicial custody, and further investigation is underway.

More Arrests Likely as Probe Expands

Investigators say that at least 10 vehicles have already been sold through this illegal network, and efforts are ongoing to identify the buyers. Additionally, the workshop inside the showroom was found to be equipped for high-end car modifications, raising further suspicions.

DRI sources have indicated that more arrests are likely as they uncover the full extent of this luxury car smuggling and modification racket.