High-End Smuggling Racket Exposed: ED Reveals How a Coimbatore Duo Used Forged Documents to Illegally Import 16 Luxury Vehicles from Bhutan

 

In a dramatic operation targeting high-value tax evasion and unauthorized foreign exchange transactions, the Enforcement Directorate (ED) has exposed a sophisticated smuggling network centered in Coimbatore, Tamil Nadu. The racket allegedly involved the illegal import of over 16 pre-owned luxury vehicles from Bhutan into India using a combination of forged documentation and informal hawala channels.

This investigation is part of a larger probe that has also cast a shadow over several high-net-worth individuals, including popular South Indian film personalities, linked to the purchase of these smuggled cars.

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The Kingpins and the Modus Operandi

The ED’s investigation, conducted under the provisions of the Foreign Exchange Management Act (FEMA), 1999, identified two Coimbatore-based operatives—Sathik Basha and Imran Khan, partners of M/s Shine Motors—as the alleged masterminds of the syndicate.

The operation revealed a calculated and multi-layered scheme to circumvent stringent Indian customs duties, which can run into several hundred percent for imported vehicles:

1. Forged NOCs: The duo allegedly procured high-end used vehicles from Bhutan by using forged No-Objection Certificates (NOCs), presumably issued by Bhutanese authorities. The procurement was facilitated by a Bhutanese intermediary identified as Sha Kinley, an ex-Army personnel.
2. Unauthorized Transport: The vehicles were driven to the Indo-Bhutan border at Jaigaon, West Bengal. From there, they were loaded onto car-carriers and transported across states—via Kolkata, Bhubaneswar, and Chennai—straight to Coimbatore without customs clearance. This brazen movement meant zero import duty was paid to the Indian government.
3. Illegal Financial Channel: The payments for these high-value imports were reportedly routed through unauthorized foreign exchange channels, likely hawala, violating FEMA regulations pertaining to foreign-exchange transactions and the acquisition of foreign assets.
4. Dismantling and Resale: To further obscure the trail, the imported luxury vehicles were often dismantled and sold as spare parts across multiple states, including Kerala, Tamil Nadu, and Maharashtra, often using digital platforms like OLX or similar online marketplaces. Payments for these sales were frequently made in cash or to personal bank accounts, making the money trail difficult to trace.

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The Extent of the Scam and the Institutional Response

The accused admitted during questioning that they procured around 16 vehicles between 2023 and 2024. However, the ED and Customs authorities suspect the true scale of the operation to be much larger, with Customs previously seizing around 36 high-end vehicles in an operation codenamed 'Operation Numkhor.'

In recent days, the ED conducted extensive searches at 17 locations across Kerala and Tamil Nadu, including residences, business establishments, and automobile workshops. The raids, which reportedly touched the premises of actors like Dulquer Salmaan, Prithviraj Sukumaran, and Amit Chakkalackal (who were later questioned), resulted in the seizure of crucial evidence:

• Incriminating documents
• Electronic devices
• Vehicle papers
• Forged NOCs
• WhatsApp chats and bank details related to the transactions

The ED noted that neither M/s Shine Motors nor its partners possessed a mandatory Import-Export Code (IEC), nor did they maintain the statutory invoices required for legitimate trade.

Implications: Evasion and Economic Crime

This case highlights the persistent vulnerability of India's porous borders and the sophistication of networks determined to exploit regulatory loopholes for financial gain. The ED's preliminary findings confirm violations of FEMA, primarily relating to illegal money transfer and the acquisition of foreign vehicles without authorization.

The Enforcement Directorate is currently undertaking forensic analysis of the seized records to trace the complete money trail, identify all beneficiaries, and confirm the involvement of any foreign accounts. The agency is also coordinating closely with Customs, State Regional Transport Offices (RTOs), and other agencies to ensure comprehensive legal action is taken against all members of the syndicate, reaffirming the government's commitment to cracking down on high-value economic crime.