Hyderabad, Sep 26, 2025
The Enforcement Directorate (ED) searched the premises of luxury car dealer Basarath Ahmed Khan here on Friday for alleged violations of the Foreign Exchange Management Act (FEMA).
The ED’s Hyderabad unit conducted searches at the dealer’s residence in Jubilee Hills and his offices, including the Car Lounge in Gachibowli.
The ED officials also searched the premises linked to Basarath Khan’s relatives and friends. The searches lasted for six hours.
In May 2025, the Directorate of Revenue Intelligence (DRI), Ahmedabad, arrested Basarath Khan in connection with a customs duty evasion racket linked to the import of high-end cars.
The dealer allegedly sold luxury cars to political leaders, business persons, and celebrities. The Central agencies are identifying those who purchased the vehicles from him and whether there was any customs duty evasion.
Meanwhile, Union Minister of State for Home Affairs Bandi Sanjay Kumar has welcomed the Enforcement Directorate’s move to initiate an investigation into illegally imported cars.
“Such action is vital to uphold the rule of law and protect the integrity of our economy. The probe must fairly examine both sellers and buyers, especially those whose actions have caused a loss to the country’s exchequer,” the MoS posted on X.
“Accountability should not be selective – every link in the chain must face scrutiny. Trust that the investigation will be pursued diligently, impartially, and in full accordance with due process to set the right precedent,” he added.
On September 22, Bandi Sanjay had targeted Bharat Rashtra Samithi (BRS) leader and former Chief Minister K. Chandrasekhar Rao and his family for the alleged links with the luxury car scam.
He said that the truth must come out and that he would request the departments concerned to investigate.
“Is Car Party running on smuggled luxury cars?” asked Bandi Sanjay in a post on ‘X’, apparently referring to BRS, whose election symbol is ‘car’.
Bandi Sanjay also trained his guns on BRS Working President K.T. Rama Rao. “Why is Twitter Tillu seen in land cruisers imported by luxury car scam-accused Basarath Khan, arrested by DRI Ahmedabad?” he asked.
The BJP leader often taunts Rama Rao (KTR) by calling him ‘Twitter Tillu’.
“Why are they registered with companies linked to KCR’s family? Were these cars bought at market price or undervalued? How were payments made – benami, masked income, or laundering? Doesn’t this make KCR’s family direct beneficiaries of the conspiracy? Truth must come out. We will request concerned departments to investigate,” he wrote.
The BRS, however, rejected the allegation. Party leaders said the car was purchased like any other vehicle transaction. It also questioned why Bandi Sanjay was not highlighting a serving Congress minister’s purchase from Khan.
BRS leader Krishank Manne asked why Telangana BJP leaders target KTR and spare Chief Minister A. Revanth Reddy. “If buying a Car from a Car Dealer is a Crime then MoS Home should arrest all Congress Leaders & BJP leaders who purchased Cars from this Dealer. The Car Dealer is close to your best friend Revanth whom your agencies are protecting,” wrote Krishank, who posted the photographs of Revanth Reddy and other Congress leaders with the car dealer.(Agency)
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