The Enforcement Directorate (ED) is conducting search operations at 17 locations across Kerala and Tamil Nadu on Wednesday under the Foreign Exchange Management Act (FEMA), 1999. The searches came in connection
with the ongoing probe into the smuggling of high-end luxury vehicles and unauthorised foreign exchange dealings.
The investigative agency’s crackdown on 17 premises included residences and establishments of film stars like Prithviraj, Dulquer Salman and Amith Chackalacal.
The searches were based on inputs exposing a syndicate engaged in illegal import and registration of luxury cars such as Land Cruiser, Defender, and Maserati through Indo-Bhutan and Nepal routes.
Preliminary findings revealed that a Coimbatore-based network was using forged documents (purporting to be from the Indian Army, the US Embassy, and the Ministry of External Affairs) and fraudulent RTO registrations in Arunachal Pradesh, Himachal Pradesh, and other states.
Vehicles were later sold to high-net-worth individuals, including film personalities, at undervalued prices.
ED action was initiated as prima facie violations of Sections 3, 4, and 8 of FEMA were detected — involving unauthorised foreign exchange transactions and cross-border payments through hawala channels.
Further investigation is underway to trace the money trail, beneficiary network, and foreign exchange movement.
