Rs 100 cr luxury car scam: Hyderabad businessman sold to BRS, Congress leaders

Hyderabad: Hyderabad-based businessman involved in Rs 100 crore customs scam allegedly sold luxury cars to former and sitting ministers in the Bharat Rashtra Samithi (BRS) and Congress.

The accused was identified as Basharat Ahmed Khan, the owner of the Hyderabad-based Car Lounge showroom in Gachibowli. It is yet to be known if these cars were sold at a lower price. This comes months after Basharat was arrested by the Directorate of Revenue Intelligence (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 percent of their value through deliberate under-invoicing and misdeclaration at Indian ports. Basharath was taken into custody by the DRI officials in Surat and produced before a special court in Ahmedabad. Sources indicated that the fraud would be around Rs 100 crore.

“The scam was uncovered based on a tip-off to an intelligence officer about the under-valuation of the luxury cars. Intelligence reports suggest that Car Lounge imported 8 luxury cars, including 1 Rolls-Royce, 2 Lexus cars, and 5 Toyota Land Cruisers.” an official was quoted as saying by News Meter.

The remand report revealed that Khan confessed to having an undervalued Land Cruiser 300 by AUD 38000 (Rs 20,91,000).

Similarly, he accepted to own an undervalued Rolls-Royce Cullinan by (Pound Sterling) 1,17,300 (Rs 1,24,45,530). Further, he accepted having an undervalued Lexus LX-500D by USD 59,520 (Rs 50,08,608) and revealed that he undervalued all the imported cars.

Who are the buyers of the luxury cars

In April 2025, the Directorate of Revenue Intelligence (DRI) conducted searches as part of a customs fraud investigation involving under-valued luxury car imports. The following purchasers acquired vehicles from the Car Lounge showroom in Hyderabad, each transaction under scrutiny for potential under-valuation contributing to an alleged Rs 7 crore customs duty evasion:

• AtHome Hospitality, owned by Sharmila, wife of KT Rama Rao, acquired a Toyota Land Cruiser.
• Ayaan Educational Society, represented by Mohammed Sarib Rasool Khan, purchased a Lexus LX-500D
• Pallapu Govardhan purchased a Toyota Land Cruiser.
• Mohammed Naseeruddin acquired a Toyota Land Cruiser.
• Sama Anvesh Reddy of Ventura Estates bought a Lexus LX-500D.

The searches concluded that Basharat deliberately misdeclared and under-valued the actual price of imported luxury cars, evading customs duties amounting to Rs 7 crore. He committed an offence punishable under Sections 135(1)(a) and 135(1)(b) of the Customs Act.

Luxury cars sold and lent to politicians

The investigation revealed that Basharat sold or lent luxury cars to politicians. An official was quoted by Newsmeter as saying: “Over the past 10 years, the showroom has been operational in Hyderabad. Initially, Basharat sold smaller cars, but as his connections grew, he began selling high-end vehicles. These cars were displayed at the showroom, and many were sold to VIPs or lent for use by politicians across various parties. Basharat maintained good rapport with several parliamentarians.”

The official added that customers purchasing cars from Basharat often paid in cash to evade taxes.

This article has been updated with additional information and a new headline. Currency conversions are based on exchange rates as of May 2025.