Coimbatore racket used forged NOCs, hawala channels to smuggle 16 luxury cars from Bhutan: ED

Kochi: The Enforcement Directorate (ED), Kochi Zonal Office, which conducted raids in Kerala and Tamil Nadu on Tuesday, have identified a Coimbatore-based syndicate allegedly at the centre of a racket smuggling pre-owned luxury vehicles from Bhutan into India using forged documents and unauthorised foreign exchange channels. 

The ED said the network, led by two persons — Sathik Basha and Imran Khan, partners of M/s Shine Motors, Coimbatore — procured high-end used vehicles through a Bhutanese intermediary, Sha Kinley, an ex-Army personnel. According to a statement issued by ED, Basha and Khan admitted during questioning that between 2023 and 2024, they procured around 16 vehicles from Bhutan using forged No-Objection Certificates (NOCs) purportedly issued by authorities there. 

The duo allegedly routed payments through informal hawala channels and sold dismantled vehicles and parts across multiple states without paying import duties. The vehicles were driven to the Indo-Bhutan border at Jaigaon, loaded onto car carriers, and transported through Kolkata, Bhubaneswar, and Chennai to Coimbatore without customs clearance. 

Once in India, the vehicles were reportedly dismantled and sold as spare parts across Kerala, Tamil Nadu, Maharashtra, and other states, often via online marketplaces like OLX, with payments made in cash or to personal accounts. Neither Shine Motors nor its partners held a valid Import-Export Code (IEC) or maintained statutory invoices, ED said. 

The revelation came following searches conducted at 17 locations across Kerala and Tamil Nadu under the Foreign Exchange Management Act (FEMA), 1999. The premises included residences, automobile workshops, and business establishments in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, Coimbatore, and Chennai. Raids were conducted even at the houses of actors Dulquer Salmaan, Prithviraj and Amith Chakkalackal. 

During the searches, officials seized incriminating documents, electronic devices, forged NOCs, vehicle papers, WhatsApp chats, bank details, and buyer lists. Several workshops across Kerala were also found storing dismantled car parts allegedly linked to the network. 

The ED’s preliminary findings point to violations of Sections 3, 4, and 8 of FEMA, relating to unauthorised foreign exchange dealings and acquisition of foreign vehicles. The agency is now forensically analysing the seized records to trace the money trail and identify other beneficiaries. 

Officials said the syndicate exploited porous borders and online resale platforms to evade customs duties and move foreign exchange through illegal channels. The operation has provided crucial leads to identify more players in the network. Following the raids, the ED is coordinating with the Customs, State RTOs, and other agencies for further verification and legal action. 

“Admissions obtained during the searches have provided vital leads for tracing the funds and identifying other members of the syndicate,” an ED source said, adding that further investigation is underway.

The raids form part of the agency’s larger probe launched after inputs suggested a cross-border car smuggling racket involving forged import documents and hawala transactions. The case is linked to ‘Operation Numkhor,’ a major drive by the Customs (Preventive) Commissionerate, Kochi, which began on September 23 and led to the seizure of 39 luxury cars suspected to have been illegally brought from Bhutan.