KOCHI: The Directorate of Enforcement (ED) Kochi Zonal Office has successfully dismantled a major Coimbatore-based operation suspected of illegally importing high-value used cars from Bhutan and Nepal. This complex scheme also involved extensive unauthorized foreign exchange transactions.
At the core of this illicit network were Shine Motors and its partners, Sathik Basha and Imran Khan. The ED alleges that these individuals acquired second-hand vehicles from Bhutan by creating fraudulent No-Objection Certificates (NoCs) and funneling payments through unofficial channels.
During their questioning under Section 37 of the Foreign Exchange Management Act (FEMA), 1999, Mr. Basha and Mr. Khan reportedly confessed to importing approximately 16 vehicles from Bhutan. This was facilitated by a Bhutanese middleman, Sha Kinley, an ex-Army officer. According to an ED press release, these vehicles were driven to the Indo-Bhutan border at Jaigaon, then loaded onto car carriers and transported through Kolkata, Bhubaneswar, and Chennai to Coimbatore. Crucially, no customs duty was paid during this process. Once in Coimbatore, the vehicles were dismantled and their parts sold across various states, including Kerala, Tamil Nadu, and Maharashtra, often via online platforms like OLX. Payments were typically made in cash or to personal bank accounts. Neither Shine Motors nor its partners held the required Import-Export Code, nor did they issue proper invoices for these transactions.
The Illicit Money Trail
Subsequent searches of garages and workshops throughout Kerala yielded significant evidence, including dismantled vehicle components and digital communications with suppliers in Bhutan. Authorities confiscated forged NoCs, WhatsApp conversations, bank records, and lists of buyers, all pointing to the extensive nature of the scheme.
The ED asserts that these findings reveal clear violations of Sections 3, 4, and 8 of FEMA, 1999, pertaining to unauthorized foreign exchange dealings and the acquisition of foreign assets. Forensic analysis of the seized records is underway to meticulously track the flow of funds and identify any foreign accounts involved. The agency is actively collaborating with Customs, State Road Transport Officials, and other relevant bodies to verify information and pursue further legal action.
Key Breakthroughs and High-Profile Connections
This enforcement action has exposed a sophisticated criminal enterprise that cleverly leveraged porous borders and digital marketplaces to bypass customs duties and facilitate illegal foreign exchange transfers. The confessions and evidence gathered during the searches have provided crucial insights, enabling investigators to track the illicit funds and identify other individuals involved in this extensive syndicate.
These preliminary findings by the ED emerged just one day after comprehensive searches were conducted under FEMA at 17 locations across Kerala and Tamil Nadu. These included private residences—notably those of popular actors Dulquer Salmaan and Amit Chakkalackal—as well as various workshops and business premises in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, Coimbatore, and Chennai. The ED confirmed the seizure of numerous incriminating documents, electronic devices, vehicle registration papers, and detailed payment records during these widespread operations.
During an extensive inquiry at his residence on Wednesday, details were gathered from Mr. Salmaan. His vehicles were among the 40 confiscated by the Customs (Preventive) Commissionerate, Kochi, following raids conducted across the state on September 23 and in the subsequent days.