Luxury car scam: Hyderabad ED raids Basharath Khan’s premises

Hyderabad: The Enforcement Directorate here is carrying out searches against city businessman Basharath Khan, who was arrested in the luxury car scam.

The raids come after the Directorate of Revenue Intelligence (DRI) arrested him for deliberately wrongly appraising the prices of cars and selling vehicles at a low price.

The luxury car case that involves ministers

The investigation has revealed that a former minister in the previous BRS government and a sitting minister in the Congress government have purchased imported luxury cars from a Hyderabad-based businessman, Basharath Khan Patan, accused in the Rs 100 crore customs fraud case.

Basharath Khan Patan owns ‘Car Longue’, and his name cropped up during the investigation into the case. It is yet to be established if these cars were undervalued.

DRI raids reveal alleged customs fraud

The raids come months after Basharath was arrested by the DRI Ahmedabad in a Rs 100 crore customs fraud related to the import of high-end luxury cars.

In May 2025, based on specific intelligence inputs, the DRI found that luxury vehicles were imported into India at nearly 50 per cent of their value through deliberate under-invoicing and misdeclaration at Indian ports. Basharath was picked up by the DRI sleuths in Surat and produced before a special court in Ahmedabad. Sources indicated that the fraud would be around Rs 100 crore.

How did the lid blow off?

It all began when Intelligence officer Susheel Choudhary was tipped off about mis-declaration and under-valuation in the import of luxury cars. This prompted an enquiry by the agency.

Intelligence reports suggested that SK Car Lounge, Hyderabad, had imported the right luxury cars (one Rolls Royce, two Lexus cars and five Toyota Land Cruisers)

NewsMeter accessed the remand report, which gave insights into the case. Here are snippets of the confession statement-

- Basarath Khan admitted to have an undervalued Land Cruiser 300 by AU$38000 (Rs 20,91,000)

- Similarly, he accepted to have an undervalued Rolls-Royce Cullinan by (Pound Sterling) 1,17,300 (Rs 1,24,45,530).

- Further, he accepted to have an undervalued Lexus LX-500D by USD 59,520 (Rs 50,08,608).

- Basarath further deposed that he has undervalued all the imported cars.

- The luxury cars transactions through ICD Tughlakabad (INTKD6) (Delhi State) and Customs House-Chennai (Tamil Nadu State)

Who are the other people to whom vehicles have been sold?

During searches conducted by DRI in April 2025, it was found that one Lexus LX-500D car was sold to Ayaan Educational Society, represented by Mohd Sarib Rasool Khan, at Rs. 3.25 crore, whereas the landed value (as per the BE filed) of the car was shown around Rs 1.75 crore.

Following this, searches were conducted at the residential premises of Mohd Sarib Rasool Khan. However, no Lexus was found on the premises.

The searches concluded that Basarath deliberately mis-declared and undervalued the actual price of imported luxury cars and evaded customs duties to the tune of Rs 7 crore.

He has committed an offence punishable under Section 135 (1) (a) and 135 (1) of the Customs Act.

Accused provides cars to politicians holding office

The showroom, ‘Car Lounge’, is located on the Raidurg-Gachibowli road, Hyderabad. The accused hails from Nampally, Vijay Nagar colony. His elder brother owns a couple of workshops.

“Over the last 10 years, the showroom has been operational in Hyderabad. Earlier, he used to sell small cars. But later, as he grew his connections, Basharath started selling high-end cars. These cars were put on display at the showroom. Many vehicles were sold to VIPs, and cars were lent to be ‘used’ by politicians, cutting across all parties. Basharath held a good rapport with a few parliamentarians,” a source told NewsMeter.

From a humble beginning at Vijay Nagar Colony in Nampally, he leapt forward quickly through his network among politicians. He is known for hosting high-profile parties for politicians who travel all the way from Delhi.

Customers would pay Bashrath in cash to avoid taxes

The firm is jointly owned by Bashrath and his partner, Dr Ahmed. The high-end cars were also stationed at the farmhouse.

Sources also indicated that many of his customers would purchase cars for cash to avoid paying taxes and even help convert black money to white. From a middle-class family, he quickly grew rich thanks to being street smart.