KOCHI (Kerala): In a major development, the Enforcement Directorate (ED) on Wednesday conducted searches at multiple locations across Kerala and Tamil Nadu, targeting properties linked to Malayalam film stars Dulquer Salmaan and Prithviraj Sukumaran. The raids are part of an ongoing probe into the Bhutan luxury car smuggling case, which allegedly involves the illegal import of high-end vehicles through the Bhutan and Nepal routes.
Raids across Kerala and Tamil Nadu
According to reports from Manorama Online, the raids began early on October 8 and spanned several districts — including Kottayam, Thrissur, Malappuram, Kozhikode, and Chennai. Residences belonging to Dulquer Salmaan, Amit Chakkalackal, and foreign businessman Vijeesh Varghese, along with several car dealers, were among those searched.
Sources said that three of Dulquer’s residential properties were covered during the operation. The ED also raided properties linked to Malayalam superstar Mammootty in Chennai’s Greenways Road, according to a report by India Today.
Officials stated that the raids were conducted based on findings from a Customs Department investigation into the illegal import of luxury cars using forged documentation. Vehicles such as Toyota Land Cruisers, Land Rover Defenders, and other high-end models were allegedly brought into India at reduced customs duty through fraudulent routes.
Customs probe reveals luxury car racket
The Customs Department’s initial investigation had revealed that several imported vehicles were brought into India under diplomatic or concessional import schemes, and later sold to buyers, including film celebrities, at discounted prices.
Authorities suspect that fake registration certificates (RCs) were generated in states like Arunachal Pradesh and Himachal Pradesh to legitimise these illegally imported cars. The forged documents made the vehicles appear as though they were legally purchased and registered domestically.
A senior enforcement official said that these operations are part of a larger crackdown against “a pan-India network involved in car smuggling, money laundering, and hawala transactions.”
High court directive on Dulquer’s seized vehicle
The raids come just a day after the Kerala High Court directed the Customs Department to reconsider its decision regarding the seizure of Dulquer Salmaan’s Land Rover Defender.
The court instructed Customs to re-examine the matter and, if valid documentation is produced, to make a decision on releasing the vehicle within a week. The bench also questioned why preliminary inquiries were not completed before confiscating the vehicles.
FEMA violations and hawala links under scrutiny
The ED has initiated its investigation under the Foreign Exchange Management Act (FEMA), citing suspected violations of Sections 3, 4, and 8, which pertain to the unauthorised handling of foreign exchange and capital account transactions.
Preliminary findings suggest that a Coimbatore-based network coordinated the smuggling operation, creating fake RTO registrations and facilitating illegal foreign remittances to finance the imports. Officials believe that hawala channels were used to make payments to foreign suppliers and intermediaries.
Widening scope of investigation
As the investigation progresses, the ED is reportedly examining financial transactions and communications between car dealers, intermediaries, and several high-profile individuals. Authorities are also checking if any foreign exchange violations were committed during the purchase or resale of the smuggled vehicles.
Meanwhile, both Dulquer Salmaan and Prithviraj Sukumaran have yet to issue official statements regarding the raids. Sources close to the actors have stated that they are fully cooperating with the authorities and are prepared to provide necessary documentation if requested.
The ED is expected to submit a preliminary report to the Ministry of Finance within the coming days, outlining the scale of the operation and identifying possible violations under FEMA and the Prevention of Money Laundering Act (PMLA).
A case that shakes Kerala’s film industry
The Bhutan car smuggling probe has sent ripples across Kerala’s entertainment industry, bringing several top names under the scanner. With enforcement agencies intensifying scrutiny over alleged money laundering and customs evasion, the case is expected to widen further in the coming weeks.
As the investigation unfolds, it could potentially expose a complex nexus between dealers, financiers, and high-profile buyers, making it one of the most high-profile financial crime cases to emerge from the Malayalam film fraternity in recent years.