Illegal imports, big names, bigger duties: the cost of skipping customs

Actors Dulquer Salmaan and Prithviraj Sukumaran recently found their residences raided by Indian Customs as part of Operation Numkhor, a nationwide investigation targeting the illegal import of luxury SUVs into Kerala and other states. The operation, launched earlier this year, is focused on dismantling networks that smuggle in high-end cars, re-register them through dubious means, and sell them to influential buyers, including businessmen and celebrities.

According to officials, the typical modus operandi involves sourcing pre-owned SUVs from Bhutan, sometimes ex-army or decommissioned vehicles, then moving them across the border into India. Once inside, these vehicles are often registered in Himachal Pradesh, using forged or temporary addresses, before being transferred to other states like Kerala. Many of these cars are cosmetically altered to disguise their age or origin, and once sold, they can fetch premium prices in markets where demand for luxury SUVs is high.

Indian law explicitly prohibits the import of second-hand vehicles except in very narrow circumstances. Importers who bypass this rule generally do so to avoid paying the steep customs duties and GST applicable to such imports. For used luxury vehicles, taxes can almost double the cost of the car, which is why dealers and buyers are tempted to find shortcuts. By bringing them through Bhutan and manipulating the registration process, importers exploit loopholes that reduce scrutiny and costs.

Operation Numkhor has already uncovered several such transactions, with raids not only at the homes of actors but also at the premises of car dealers and businessmen. Past cases show that celebrities and high-profile individuals have been implicated before in similar scams like the 2008 crackdown when Bollywood actors and industrialists were forced to pay heavy penalties for illegally imported cars, or the more recent Hyderabad case where a dealer was accused of evading customs duties worth over ₹100 crore.

If Dulquer Salmaan, Prithviraj Sukumaran, or any others are found guilty of knowingly possessing such illegally imported vehicles, the consequences could be severe. The cars would likely be seized, and the owners would be liable to pay the full legal customs duties along with penalties and interest. In extreme cases, criminal proceedings under the Customs Act may also follow, though conviction depends on proof of intent and knowledge of wrongdoing.

At its core, this is not just about celebrities buying rare cars, it is about a shadow network that undermines the law, drains tax revenue, and compromises fair trade. Operation Numkhor is Customs’ attempt to send a clear message: no matter how big the names or how exotic the cars, the law will catch up.