In a sweeping, state-wide crackdown codenamed 'Operation Numkhor', the Customs (Preventive) Commissionerate in Kochi, Kerala, seized 36 high-end luxury vehicles, possibly blowing the lid off a sophisticated smuggling racket that illegally imported second-hand cars from Bhutan.
The operation, which involved raids at 30 to 35 locations across Kerala, has also cast a spotlight on prominent Malayalam actors, including Dulquer Salmaan, Prithviraj, and Iyobinte Pusthakam-fame Amith Chakalakkal, whose residences were searched.
“Numkhor” means “vehicle” in the Bhutanese Dzongkha language. The operation under the same name was launched after a meticulous five-to-six-month investigation identified between 150 and 200 illegally imported cars in Kerala alone, detailed Dr T. Tiju, the Customs (Preventive) Commissioner in Kochi, at a press briefing on Tuesday evening.
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The operation, conducted with assistance from the Kerala Motor Vehicles Department (MVD), Anti-Terrorist Squad (ATS), and the Kerala Police, uncovered a complex web of forgery, tax evasion, and potential threats to national security, said the Customs commissioner.
Customs officials revealed the intricate methods used by a Coimbatore-based gang to circumvent Indian laws, which prohibit the import of second-hand cars except under stringent “Transfer of Residence” (TD) rules that require hefty duties.
The smugglers exploited Bhutan's lower import duty structure, bringing luxury cars there first before smuggling them into India, said Tiju.
The cars entered India in three ways: dismantled as parts (Completely Knocked Down), hidden inside large transport containers, or driven across the border by individuals posing as tourists who would then abandon the vehicles. To pay for these cars, the racket smuggled both Indian and foreign currency into Bhutan.
Once in India, the vehicles were registered using completely forged documents bearing the seals and insignia of highly credible institutions like the Indian Army, various Indian Embassies, the ministry of external affairs, and even the American Embassy, Customs officials alleged.
This also invites the possibility of manipulation of the official Parivahan vehicle registration portal. For instance, a car manufactured in 2014 was found registered on Parivahan with its first user listed in 2005, he noted.
“The investigation has just begun,” said Tiju, as the Customs department is set to involve all central and state agencies as and when parts of the probe come under their jurisdiction. Intelligence agencies have confirmed that these smuggled vehicles have previously been used for smuggling gold and narcotics across the Indo-Bhutan border.
If gold and drugs can be brought in this way, anything can be brought in, the Customs commissioner reasoned.
Mollywood under the scanner
Two of actor-producer Dulquer Salmaan’s vehicles, a Defender and a Prado, were identified by Customs. One vehicle was brought in for inspection, while the other reportedly lacked a road fitness certificate, said Customs Commissioner Tiju. However, he noted that despite many of these vehicles being purchased by High Net Worth Individuals (HNWIs), some of whom might have been unwitting victims.
The department has issued summons to the owners of the seized 36 vehicles, and they are expected to appear for questioning and provide statements. The Customs officer specifically stated that the next steps, including potential arrests, would depend on whether the owners were aware of the vehicles’ illegal origins.
Earlier in the day, a Customs officer told THE WEEK that high-end cars were being brought to India through Bhutan fairly easily, given the open borders between the nations. From Bhutan, all you need is a permit, and you can simply drive the vehicle into India.
It is here that it gets a bit murky. In India, the import of used cars is prohibited, unless under the Transfer of Residence (TR) rule. But that carries with it a significant tariff. Usually, people do not opt for this because buying a car back in India works out better, fiscally.
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India slaps massive tariffs on both new cars and used cars imported into the country. Used cars under the TR rule can only enter the nation through certain designated ports. But if you love antique cars that are usually expensive and not produced in India, you have no option but to import them with tariffs—a costly affair.
It is precisely this that the Customs officer reasons that the alleged individuals are bypassing. In the state of Kerala alone, the officer said, more than 150–200 vehicles have entered through this route. The extent of this or the overall cost to the exchequer is yet to be determined, since the Customs department would need time to examine individual documents related to each vehicle before reaching conclusions, according to the officer.
Operation Numkhor is just a start. If further investigations find potential links to money laundering—or even terrorist funding—these could bring the Anti-Terrorism Squad (ATS) in as an active stakeholder in the investigation. Moreover, many of the seized cars were found to be operating on Kerala’s roads without valid insurance or fitness certificates, posing a direct threat to public safety, according to the Customs department officials.
[This story is based on the official press briefing and announcement by the Customs (Preventive) Commissionerate in Kochi, and pertains to an active investigation.]
