HYDERABAD, May 16 -- Hyderabad-based luxury car dealer Basharat Khan, owner of the 'Car Lounge' showroom, has been arrested in Gujarat for allegedly orchestrating a massive Rs.100 crore customs duty evasion racket involving the illegal import of high-end vehicles.

According to the Directorate of Revenue Intelligence (DRI), Khan systematically undervalued imported luxury cars - in some cases by nearly 50% - to dodge hefty import duties. The cars, primarily sourced from the US and Japan, were rerouted through Dubai or Sri Lanka, where they were converted from left-hand drive to right-hand drive to comply with Indian norms. Fake documents and undervalued invoices were then used to bring them into India.

So far, officials have uncovered at ...