- According to the report, the mastermind of the racket is based in Dubai who would arrange for the import of luxury cars into India from countries like the UK, Japan and UAE, in the names of diplomats.
The modus operandi detected was as follows – a Dubai-based individual, who has been involved in past Customs offences and has been investigated by DRI, was the mastermind behind the racket. He would arrange for import of luxury cars into India from countries like UK, Japan and UAE, in the names of diplomats. The actual buyers for the vehicles would be identified by the CEO of a popular chain dealing in sale of pre-owned luxury cars. Upon arrival in India, these vehicles would be directly ferried to the city of the buyer or a dealer of luxury cars. The domestic registration for these vehicles would be done in certain specific Regional Transport Offices (RTOs) in Maharashtra, Himachal Pradesh and Punjab. After the registration formalities were completed, these cars on which full Customs duty @ 204% was evaded, would be sold to the Indian buyers, thereby making a huge profit at the cost of Government revenue.
Upon receiving specific details of one such luxury car imported in the name of a Delhi-based diplomat of an African nation, DRI officers kept discreet watch over the vehicle after its arrival at the port. Thereafter, this vehicle was loaded onto a transport vehicle and taken to a showroom in Andheri and placed for display. DRI officers followed the vehicle and kept discreet watch over the car all along. Parallelly, in a carefully-planned all-India operation across 7 cities, searches were carried out at the premises of the key individuals involved in this racket. A total of 6 cars have been detained under the provisions of the Customs Act, 1962. More cars have been identified and are in the process of being located.
3 key individuals including the CEO of the Gurugram-based luxury car dealership have been arrested in this racket so far. Investigation is likely to identify more players of this racket in the coming days. It is estimated that more than 20 luxury vehicles have been smuggled into India in the name of diplomats over the past 5 years, resulting in duty evasion of more than Rs. 25 crore. The detection of this racket has thus helped unearth a serious fraud, reinforcing DRI’s ability to detect and combat unique and sophisticated methods of smuggling.
The Directorate of Revenue and Intelligence (DRI) on Friday busted a luxury cars smuggling racket involving the misuse of diplomatic privileges, with the arrest of three persons, including Nipun Miglani, a senior executive of Gurugram-based luxury car dealership, Big Boy Toyz, people familiar with the matter at the agency said.
Founder and managing director of Big Boy Toyz Jatin Ahuja told HT that his firm has fired Miglani as the CEO with immediate effect and a police complaint is also being filed against him to secure the interests of the company.
“We absolutely have no idea about what Nitin Miglani was doing in his personal capacity beyond office hours but Big Boy Toyz has not role in it and not a single customer of the company has been affected (by his activities). We were totally unaware of this,” Ahuja said.
He added that BBT is not into the business of importing cars.
A statement by Big Boy Toyz said, “Mr. Nipun Miglani, an employee of the organisation… conducted certain transactions thereof in his individual capacity & without the knowledge and consent of the management of Big Boy Toyz. Mr. Nipun Miglani is terminated with immediate effect & BIG BOY TOYZ does not hold any liability and responsibility towards his alleged individual transactions. It is made known to the general public at large that whatever Mr.Nipun Miglani has done in his individual capacity, Big Boy Toyz Ltd. is not liable for the same.”