A Hyderabad-based luxury car importer has been arrested and sent to judicial custody by the Ahmedabad Chief Judicial Magistrate court for allegedly evading ₹7 crore in customs duty by undervaluing imports from the US and Japan, as per reports.
The arrest was made by the Directorate of Revenue Intelligence (DRI) as part of a broader investigation into a ₹25 crore tax evasion racket involving multiple cities, including Mumbai, Delhi, and Bangalore.
As per DRI findings, over 30 models — including Rolls-Royce, Lexus, Cadillac Escalade, and Toyota Land Cruiser — were imported using fabricated invoices to slash their declared value by up to 50%. The cars were reportedly shipped first to Dubai or Sri Lanka, where they underwent conversion from left-hand drive (LHD) to right-hand drive (RHD), before being brought into India.
This circuitous route allegedly allowed importers to misdeclare prices and dodge the then-125% customs duty applicable in 2024.
Although customs duty has since been reduced in the 2025-26 Union Budget to 70% for luxury cars priced over $40,000, the ongoing probe pertains to transactions from last year, falling under the earlier, higher tax regime.
Further investigations are underway against other importers and end-users across the country.
Source from: https://english.gujaratsamachar.com/news/gujarat/luxury-car-importer-arrested-for-7-crore-tax-evasion-in-ahmedabad
