ED Targets Mammootty, Prithviraj Over Alleged FEMA Violations and Car Smuggling

On September 23, Customs Officials Raided the Residences of Three Actors and Seized 36 High-end Luxury Vehicles

In a major development, the Enforcement Directorate (ED) has conducted raids across residences and several offices of Malayalam superstars Mammootty and Prithviraj Sukumaran as part of a luxury car smuggling and FEMA case. Officials suspect several high-end vehicles were imported using forged documents.

The Ongoing Investigation

At least 17 locations across Kerala and Tamil Nadu were part of an ongoing investigation for the alleged smuggling of luxury vehicles from Bhutan. The locations included the properties belonging to actors Mammootty, Prithviraj Sukumaran, Dulquer Salmaan, and Amit Chakkalackal, according to the latest reports.

Earlier, on September 23, Customs officials raided about 30 locations across Kerala, which included the residences of three actors, and seized at least 36 high-end luxury vehicles.

The searches also targeted other car owners, auto workshops, and traders in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam in Kerala, and Coimbatore in Tamil Nadu.

Modus Operandi

Initial investigations suggest a Coimbatore-based network that used "forged" documents claiming to be from the Indian Army, US Embassy, and MEA, along with fake RTO registrations in Arunachal Pradesh, Himachal Pradesh, and other states.

The vehicles were then allegedly sold to high-net-worth individuals, including film personalities, at prices below their value. “The raids have also revealed that some of the vehicles might have been used to smuggle gold and drugs,” PTI reported.

FEMA Act Violations

Apart from the alleged smuggling of luxury vehicles, the case also involves unauthorised foreign exchange dealings, according to officials. The raids are being carried out under the Foreign Exchange Management Act (FEMA). Notably, Kerala is the major focus area of the investigation.

According to the ED, the case shows "prima facie" breaches of Sections 3, 4, and 8 of FEMA, involving unauthorised foreign exchange transactions and cross-border payments through hawala channels.

Operation Numkhor

On September 23, properties of Malayalam stars Dulquer Salmaan and Prithviraj Sukumaran were raided as part of Operation Numkhor by the Customs Preventive wing. In the Bhutanese language, ‘Numkhor’ means vehicle, and the customs department suspects that more than 100 luxury vehicles, including Land Rovers, Land Cruisers, and Prados, were smuggled into Kerala from Bhutan and later purchased by Malayalam actors. “There are around 15 such violations,” one officer said.

Customs Officers Flag Major Concerns

“If they can smuggle cars, gold, and narcotics like this, then they can bring anything else. Therefore, it is a major threat to the national and economic security of the country,” Commissioner of the Customs Preventive Commissionerate in Kochi, T Tiju, said.

“After the vehicles are brought to India, they are registered in different parts of the country using carefully forged documents. Significantly, the Indian Army’s and foreign embassies’, including the US Embassy’s, name, seal, and their insignia are forged to register these vehicles,” the Commissioner added.

Officials said that investigations are underway to determine the money trail and the beneficiary network.