Hyderabad Dealer Busted in Luxury Car Customs Scam

Post by : Rajat Arora

How a Hyderabad Luxury Car Dealer Evaded Customs from Hummer to Rolls-Royce

In a shocking revelation, Indian authorities have uncovered a major luxury car smuggling racket that has exposed the dark underbelly of automobile imports. The operation, which spans from Hummer to Rolls-Royce: How Hyderabad luxury car dealer evaded customs, involved altering vehicles overseas to bypass duties, revealing a web of deception involving Dubai, Sri Lanka, and Hyderabad's elite buyers.

The Scam: Luxury Cars at Low Cost

Luxury vehicles like Rolls-Royce, Bentley, Hummer, and Land Rover typically attract high import duties in India—sometimes up to 200% of the original car’s cost. To dodge this, a Hyderabad-based luxury car dealer allegedly devised a clever but illegal workaround: buy used luxury cars abroad, strip them down, ship them in parts, and reassemble them in India while declaring them as "used auto parts" or "scrap".

The cars were mainly modified or disassembled in Dubai and Sri Lanka, where labor costs are low, and local officials can sometimes be bribed. These altered cars were then shipped to India under misleading invoices and reassembled with the original logos and features, appearing as if newly imported.

How Customs Was Tricked

By declaring the vehicles as "scrap" or "auto parts", the dealer paid only a fraction of the customs duty required. Once in Hyderabad, the vehicles were fully restored and sold at a premium—but still well below official import market prices—attracting wealthy buyers looking for a deal.

In some cases, even the Vehicle Identification Numbers (VINs) were altered to hide the origin or history of the car, making it even harder for authorities to trace the source.

How the Authorities Caught On

The scam came to light when customs officials noticed inconsistencies in documentation during a random audit. A vehicle registered as "auto parts" turned out to be a complete, functioning Hummer on the roads of Hyderabad. This led to an in-depth investigation involving the Directorate of Revenue Intelligence (DRI), which uncovered dozens of such cases.

The DRI suspects the racket has been ongoing for over five years, with an estimated value of ₹200 crores in unpaid duties.

The International Trail: Dubai & Sri Lanka’s Role

Dubai has long been a hub for used luxury cars, especially from Europe and North America. Dealers in the UAE helped facilitate the initial purchase of vehicles at a discount. Sri Lanka served as the reassembly and staging ground for shipping to India, owing to its proximity and relaxed inspection norms on used goods.

What’s more concerning is that foreign collaborators were found to have strong ties with Indian agents, offering end-to-end solutions—from disassembling to fake documentation and shipping logistics.

Impact on Buyers and Indian Economy

Many of the buyers were reportedly unaware that their dream luxury cars were illegal imports. With authorities now tracking each case, innocent buyers may face vehicle seizures and possible legal consequences.

Economically, such scams result in massive revenue loss for the government. Customs duties are crucial for a developing economy like India’s, and their evasion affects public welfare schemes and infrastructure projects.

Legal Consequences for the Dealer

The luxury car dealer in Hyderabad has now been booked under multiple sections of the Indian Penal Code and Customs Act. Assets have been frozen, including luxury showrooms, warehouses, and several high-end vehicles. Officials are also investigating possible money laundering under the Prevention of Money Laundering Act (PMLA).

What Buyers Should Watch Out For

If you're planning to buy a luxury car in India, especially a pre-owned import, here are some precautions:

• Check Import Documentation: Always verify the bill of entry and customs clearance documents.

• VIN Tracking: Use the Vehicle Identification Number to trace the car’s manufacturing year and country of origin.

• RTO Records: Ensure proper registration with local RTO and confirm roadworthiness.

• Dealer Reputation: Buy only from trusted and reputed dealers with transparent operations.

Disclaimer

The information provided in this article is for general informational purposes only. While DXB News Network strives for accuracy and reliability, we do not guarantee the completeness or timeliness of the content. All opinions, updates, and announcements mentioned are based on available sources at the time of publishing. Readers are encouraged to verify facts independently and make informed decisions. DXB News Network is not responsible for any actions taken based on this content.

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