The Enforcement Directorate (ED) has launched raids across Kerala and Tamil Nadu targeting film stars Dulquer Salmaan and Prithviraj Sukumaran in a major luxury car smuggling and FEMA violation case linked to illegal high-end vehicle imports.
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KOCHI: The Kochi Zonal Office of the Directorate of Enforcement (ED) conducted extensive raids across Kerala and Tamil Nadu under the Foreign Exchange Management Act (FEMA). The searches, carried out on Wednesday, spanned 17 locations as part of an ongoing probe into the alleged smuggling of high-end pre-owned luxury cars and related unauthorised foreign exchange transactions.
Among those whose premises were searched are Malayalam film stars Dulquer Salmaan, Prithviraj Sukumaran, and Amit Chakkalakkal. The ED also targeted vehicle owners, automobile workshops, and traders in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, and Coimbatore.
The latest raids carried on on September 23, 2025, in Customs operations, when the Customs (Preventive) Commissionerate, Kochi, carried out simultaneous searches at over 30 locations across Kerala. During those operations, 37 high-value second-hand cars suspected of having been smuggled in from Bhutan were seized. Authorities later seized three more vehicles, bringing the total to 40.
How the Racket Operated
According to the ED, the investigation exposed a Coimbatore-based syndicate that allegedly smuggled luxury cars into India through the Indo-Bhutan and Indo-Nepal routes. Vehicles such as Toyota Land Cruisers, Land Rover Defenders, and Maseratis were reportedly brought in using forged documents that falsely claimed connections with the Indian Army, US Embassy, and Ministry of External Affairs.
These vehicles were then registered fraudulently with Regional Transport Offices (RTOs) in Arunachal Pradesh, Himachal Pradesh, and other states using fake credentials. Once the registration was complete, the vehicles were sold to high-net-worth individuals (HNIs), including film personalities, at prices significantly below market value.
FEMA Violations and Hawala Links
The ED stated that it initiated action after detecting prima facie violations of Sections 3, 4, and 8 of FEMA, involving unauthorised foreign exchange dealings and cross-border payments through hawala channels. The agency is now tracing the money trail, beneficiary network, and foreign exchange movements connected to the alleged smuggling racket.
Operation “Numkhor”
Earlier, Customs had launched “Operation Numkhor”, named after the Bhutanese word for “vehicle”, to crack down on the illegal import network. The operation targeted 150–200 vehicles flagged by the Ministry of Road Transport and Highways for registration irregularities.
Several of these luxury vehicles, belonging to top actors and businessmen, were seized for further verification. Sources confirmed that multiple vehicles owned by Dulquer Salmaan and Amit Chakkalakkal were taken into custody. Although Prithviraj Sukumaran’s residence in Kochi was searched, no vehicles were seized from his premises.
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Legal Action and Court Proceedings
In the aftermath of the seizures, Dulquer Salmaan has approached the Kerala High Court seeking the release of his impounded vehicles. On Tuesday, the court directed him to approach the adjudicating authority under the Customs Act for the release of one of his luxury SUVs.
The investigation remains ongoing, and both the ED and Customs are coordinating efforts to uncover the full extent of the alleged smuggling and financial violations.
