ED raids 17 sites in luxury car smuggling racket; film stars Prithviraj, Dulquer searched

The Enforcement Directorate (ED) launched a sweeping crackdown on October 8, raiding 17 locations across Kerala and Tamil Nadu in a major investigation into the smuggling and illegal registration of luxury cars destined for Nepal and Bhutan.

Sources say the syndicate at the center of the probe allegedly used forged documents, purportedly issued by the Indian Army, the US Embassy, and the Ministry of External Affairs, to fraudulently register high-end vehicles including Land Cruisers, Defenders, and Maseratis with Regional Transport Offices in Arunachal Pradesh, Himachal Pradesh, and other states.

These cars were then reportedly sold at discounted rates to actors and high-net-worth individuals.

ED teams from the Kochi Zonal Office conducted simultaneous searches in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, and Coimbatore, including premises linked to actors Prithviraj Sukumaran, Dulquer Salmaan, and Amith Chakkalakal, along with certain vehicle owners, automobile workshops, and dealerships.

Investigators seized electronic devices, documents, and financial records during the operation.

The agency has cited potential violations of Sections 3, 4, and 8 of the Foreign Exchange Management Act (FEMA), relating to unauthorized foreign exchange dealings and cross-border transactions routed through Hawala channels.

Officials said the ED is now meticulously tracing the money trail, identifying beneficiaries, and tracking the flow of foreign currency tied to the racket, signaling that further action against the network could follow.