FEMA violations: ED follows customs, raids 17 locations

Kochi: Enforcement directorate's (ED) Kochi zonal office conducted simultaneous raids at 17 locations across Kerala and Tamil Nadu on Wednesday under provisions of the Foreign Exchange Management Act (FEMA). The raids are part of an ongoing probe into the alleged smuggling of high-end used luxury cars and also related to unauthorized foreign exchange transactions.The operation, spanning Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam and Coimbatore, covered the homes and offices of actors Prithviraj Sukumaran, Dulquer Salmaan and Amith Chakalakkal as well as vehicle owners, automobile dealers and workshops. ED initiated action after customs (preventive) commissionerate conducted raids on Sept 23 and seized 36 premium cars that were suspected to have been smuggled from Bhutan. The raids happened at over 30 locations, including residences of actors.ED also issued a statement that it acted on intelligence inputs that indicated the presence of a well-organized network that illegally imported and registered vehicles such as Land Cruiser, Defender and Maserati that were brought via Indo-Bhutan and Indo-Nepal routes.Preliminary findings point to the existence of a Coimbatore-based syndicate that allegedly uses forged documents—purportedly issued by the Indian Army, US Embassy and MEA to obtain fraudulent vehicle registrations in Arunachal Pradesh and Himachal Pradesh. These cars are later sold to high-profile buyers, at prices way below the market value.ED said that its investigation revealed violations of Sections 3, 4, and 8 of FEMA, involving cross-border hawala payments and unauthorized foreign exchange dealings. The agency is now following the money trail to identify beneficiaries of the illegal trade.Earlier, customs had launched operation Numkhor and identified 150-200 luxury cars whose registration details were flagged by the ministry of road transport and highways' database. Motor vehicles department, anti-terrorism squad and Kerala Police had supported the operation.Customs had seized multiple vehicles owned by Salmaan and Chakalakkal. Officials who visited Prithviraj's residence in Kochi did not confiscate any vehicle. Salmaan then moved the high court with a plea to release his cars. On Tuesday, the court directed him to approach the adjudicating authority under the Customs Act for further relief.Salmaan, who arrived in Kochi on Wednesday after reportedly being summoned by ED officers, did not respond to questions on the details of the case.