New Delhi: Directorate of Revenue Intelligence An imported luxury car racket belonging to foreign diplomats has been unearthed in Delhi. The agency has seized six cars from different cities and arrested three people so far, including the CEO of a car dealership in Gurgaon.
The investigation revealed the involvement of more players in this racket. It is estimated that over 20 luxury vehicles in the name of diplomats have been smuggled into India in the last five years, resulting in duty evasion of over Rs 25 crore. DRI claimed on Friday.
According to the privileges enjoyed by foreign missions and diplomats, the import of cars by them was completely exempted Custom Obligation. Indians or any other person would otherwise have to pay a duty of 204% which includes a basic customs duty of 125%, IGST 28% and 12.5% surcharges.
“DRI has unearthed a luxury car smuggling racket involving the exercise of diplomatic privileges,” the agency said. These cars, once imported in the name of foreign diplomats, were sent to merchants in different cities to evade duty. Earlier this week, the agency had conducted simultaneous searches in seven cities of those involved in the racket.
The agency has identified a Dubai-based man with a past history of customs offenses as the mastermind of the racket. He ‘arranged’ all such ‘imports’ into India UKJapan and UAE in the name of diplomats.
“The buyers of the vehicles will be identified by the CEO of a popular chain dealing in the sale of pre-owned luxury cars. On arrival in India, these vehicles will be delivered directly to the buyer’s city or to the luxury car dealer. Domestic registration for these vehicles will be done in certain specific Regional Transport Office (RTO) in Maharashtrahandjob Himachal Pradesh and Punjab,” said the DRI.
The investigation revealed the involvement of more players in this racket. It is estimated that over 20 luxury vehicles in the name of diplomats have been smuggled into India in the last five years, resulting in duty evasion of over Rs 25 crore. DRI claimed on Friday.
According to the privileges enjoyed by foreign missions and diplomats, the import of cars by them was completely exempted Custom Obligation. Indians or any other person would otherwise have to pay a duty of 204% which includes a basic customs duty of 125%, IGST 28% and 12.5% surcharges.
“DRI has unearthed a luxury car smuggling racket involving the exercise of diplomatic privileges,” the agency said. These cars, once imported in the name of foreign diplomats, were sent to merchants in different cities to evade duty. Earlier this week, the agency had conducted simultaneous searches in seven cities of those involved in the racket.
The agency has identified a Dubai-based man with a past history of customs offenses as the mastermind of the racket. He ‘arranged’ all such ‘imports’ into India UKJapan and UAE in the name of diplomats.
“The buyers of the vehicles will be identified by the CEO of a popular chain dealing in the sale of pre-owned luxury cars. On arrival in India, these vehicles will be delivered directly to the buyer’s city or to the luxury car dealer. Domestic registration for these vehicles will be done in certain specific Regional Transport Office (RTO) in Maharashtrahandjob Himachal Pradesh and Punjab,” said the DRI.
.