What Led to the ED's Search at a Luxury Car Dealer in Hyderabad?
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Synopsis
The recent ED searches at luxury car dealer Basarath Ahmed Khan's properties in Hyderabad have sparked significant controversy. This investigation ties into a broader discussion about customs duty evasion in the luxury car market, raising intriguing questions about political implications and accountability.
Key Takeaways
- ED's Investigation: The Enforcement Directorate is investigating Basarath Ahmed Khan for violations of FEMA.
- Political Implications: The case has drawn political scrutiny, especially towards BRS leaders.
- Customs Duty Evasion: The investigation is linked to customs duty evasion concerning luxury car imports.
- Public Accountability: Calls for accountability extend to all parties involved, including buyers.
- Transparency in Investigations: Ensuring an unbiased investigation is crucial for public trust.
Hyderabad, Sep 26 (NationPress) The Enforcement Directorate (ED) conducted searches at the residence and business locations of luxury car dealer Basarath Ahmed Khan on Friday, probing alleged infractions of the Foreign Exchange Management Act (FEMA).
Officials from the ED’s Hyderabad division examined Khan’s property in Jubilee Hills and his establishments, including the Car Lounge located in Gachibowli.
The search extended to properties associated with Khan’s relatives and acquaintances, lasting approximately six hours.
In May 2025, the Directorate of Revenue Intelligence (DRI) in Ahmedabad apprehended Basarath Khan for his alleged role in a customs duty evasion scheme tied to luxury car imports.
Khan is accused of selling high-end vehicles to political figures, business leaders, and celebrities. Central agencies are currently investigating the identities of those who purchased cars from him and assessing any potential customs duty evasion.
Meanwhile, Union Minister of State for Home Affairs Bandi Sanjay Kumar has expressed support for the ED's decision to investigate illegally imported vehicles.
He stated, "Such actions are crucial for maintaining the rule of law and safeguarding our economic integrity. The investigation must thoroughly examine both sellers and buyers, particularly those whose actions have impacted the nation’s revenue," as he posted on X.
On September 22, Bandi Sanjay criticized Bharat Rashtra Samithi (BRS) leader and former Chief Minister K. Chandrasekhar Rao and his family regarding their supposed connections to the luxury car scandal.
"The truth must be revealed, and I will urge the relevant departments to investigate further," he remarked.
In a post on ‘X’, he questioned, "Is the Car Party operating with smuggled luxury cars?" referencing the BRS, whose election symbol is a car.
Bandi Sanjay also targeted BRS Working President K.T. Rama Rao, questioning why he was seen in vehicles imported by the luxury car scam-accused Basarath Khan.
He often refers to Rama Rao as ‘Twitter Tillu’.
"Why are these cars associated with companies linked to KCR’s family? Were they purchased at full market value or at a reduced price? How were the transactions conducted - through benami methods, hidden income, or laundering? Doesn’t this imply KCR’s family benefits directly from the conspiracy? The truth needs to come to light. We will request investigations by the appropriate authorities," he added.
In contrast, the BRS dismissed these allegations, asserting that the car was acquired like any standard vehicle purchase. They also questioned why Bandi Sanjay is not focusing on a serving Congress minister who also bought from Khan.
BRS leader Krishank Manne challenged the Telangana BJP leaders, asking why they singled out KTR while letting Chief Minister A. Revanth Reddy off the hook. "If purchasing a vehicle from a car dealer is a crime, then the MoS for Home should arrest all Congress and BJP leaders who bought cars from this dealer. The car dealer is closely associated with your best friend Revanth, whom your agencies are protecting," Krishank noted, sharing images of Revanth Reddy with the dealer.
Point of View
It is crucial to remain objective while reporting on such high-profile investigations. The focus should be on uncovering the truth and ensuring that all parties involved, including both sellers and buyers, are scrutinized fairly under the law. Transparency and accountability are vital in maintaining public trust.
NationPress
26/09/2025
Frequently Asked Questions
What prompted the ED's search of Basarath Ahmed Khan's properties?
The ED's search was initiated based on allegations of violations of the Foreign Exchange Management Act (FEMA) and previous customs duty evasion linked to high-end car imports.
Who is Basarath Ahmed Khan?
Basarath Ahmed Khan is a luxury car dealer in Hyderabad who has been implicated in customs duties evasion and is currently under investigation by the ED.
What is the significance of the ED's investigation?
The investigation highlights potential illegal activities in the luxury car market, raising questions about political connections and the integrity of economic practices.
What are the possible outcomes of this investigation?
Depending on the findings, the investigation could lead to legal action against those involved in customs evasion and could impact the reputation of political figures associated with the dealer.
How has the BRS responded to allegations?
The Bharat Rashtra Samithi (BRS) has rejected allegations against its leaders, asserting that vehicle purchases were conducted legally and questioning the motivations behind the accusations.
