Key Highlights:
- ED conducts simultaneous raids at 17 locations across Kerala and Tamil Nadu targeting luxury vehicle smuggling network
- Mammootty’s Wayfarer Films in Chennai searched along with properties of Dulquer Salmaan and Prithviraj Sukumaran
- Investigation reveals Coimbatore-based syndicate using forged Army and US Embassy documents for fraudulent vehicle registrations
Opening Overview
The Enforcement Directorate launched a comprehensive crackdown on October 8, 2025, conducting simultaneous raids at Malayalam superstar Mammootty‘s film production company in Chennai as part of an extensive investigation into luxury vehicle smuggling operations. The ED raids targeted Wayfarer Films Private Limited, located on Greenways Road, Chennai, with eight ED officers accompanied by CRPF personnel executing the search operation. This enforcement action represents a significant escalation in the ongoing probe into what authorities describe as a sophisticated network that allegedly smuggled high-end luxury vehicles from Bhutan using forged documents and unauthorized foreign exchange transactions.
The ED raids form part of a larger investigation spanning 17 locations across Kerala and Tamil Nadu, targeting prominent Malayalam film personalities including Mammootty, Dulquer Salmaan, and Prithviraj Sukumaran under violations of the Foreign Exchange Management Act (FEMA).
Major Multi-State Enforcement Operation Unfolds
The ED raids represent one of the most comprehensive enforcement actions targeting the Malayalam film industry in recent years. The operation extended beyond Mammootty’s Chennai property to include simultaneous searches at residences and business establishments of several prominent film personalities across multiple districts. ED raids covered locations in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, and Coimbatore, targeting not only celebrity properties but also vehicle owners, automobile workshops, and dealers suspected of involvement in the smuggling network.
ED Raids on Properties of Malayalam Actors in Chennai and Kerala
— Tathvam-asi (@ssaratht) October 8, 2025
On October 8, 2025, the Enforcement Directorate (ED) conducted coordinated raids across 17 locations in Kerala and Tamil Nadu as part of an ongoing investigation into the smuggling of high-end luxury vehicles from… pic.twitter.com/eG3LPKnWzF
- The ED raids followed intelligence inputs indicating a well-organized syndicate engaged in illegal import and registration of luxury vehicles including Toyota Land Cruisers, Land Rover Defenders, and Maserati models
- Preliminary findings from ED raids point to a Coimbatore-based network that allegedly used forged documents purportedly issued by the Indian Army, US Embassy, and Ministry of External Affairs
The scope of ED raids demonstrates the agency’s commitment to dismantling complex financial crime networks. According to official statements, the enforcement action builds upon earlier Customs investigations that resulted in the seizure of 36 premium vehicles under Operation Numkhor. The ED raids specifically target suspected violations under Sections 3, 4, and 8 of FEMA, involving illegal foreign exchange transactions and hawala payments.
Sophisticated Document Forgery Network Exposed
Investigation findings from the ED raids reveal the intricate methods employed by the smuggling syndicate to legitimize illegal vehicle imports. The network allegedly created fraudulent documents bearing official seals from prestigious institutions to circumvent import regulations and taxation requirements. ED raids uncovered evidence suggesting the systematic exploitation of interstate registration loopholes to avoid proper taxation and regulatory oversight.
- Forged documents claimed connections to the Indian Army, US Embassy, and Ministry of External Affairs to obtain fraudulent vehicle registrations in states like Arunachal Pradesh and Himachal Pradesh
- The syndicate sold luxury vehicles at significantly undervalued prices to high-net-worth individuals, including film celebrities, creating complex webs of financial irregularities
The ED raids also revealed that vehicles were brought into India through multiple channels, including completely knocked down conditions, container shipments, and disguised tourist vehicles. Customs officials estimate that around 200 illegal vehicles were brought to Kerala alone, with nearly 90 percent registered under false ownership or addresses. The ED raids aim to trace the complete financial trail of these transactions, which authorities suspect involved both Indian and foreign currency movements to Bhutan.
Celebrity Involvement and Legal Challenges
The ED raids have brought unprecedented scrutiny to Malayalam cinema’s biggest stars, with searches conducted at multiple properties belonging to industry heavyweights. Dulquer Salmaan, son of superstar Mammootty, faced searches at three of his residences, while the ED raids also targeted properties associated with acclaimed actors Prithviraj Sukumaran and Amit Chakkalackal. The timing of ED raids proved particularly significant, coming just one day after Dulquer challenged Customs authorities in Kerala High Court over the seizure of his Land Rover Defender.
- The Kerala High Court directed Dulquer to approach the adjudicating authority under the Customs Act for provisional release of his seized vehicle
- Dulquer claimed he purchased his vehicle in good faith, with documents indicating it was shipped by the International Committee of the Red Cross to New Delhi
The ED raids represent a new phase in the investigation that began with Customs’ Operation Numkhor, which seized 36 luxury vehicles from approximately 30 locations on September 23, 2025. Following the initial Customs action, two additional luxury vehicles linked to Dulquer Salmaan were subsequently seized, bringing the total confiscated vehicles associated with the actor to three. The ED raids now seek to establish whether FEMA violations occurred in the acquisition and financing of these vehicles.
Broader Implications for Financial Enforcement
The ED raids reflect the agency’s intensified focus on FEMA violations as outlined in its 2024-25 annual report, which documented significant increases in enforcement actions across multiple sectors. According to official data, the Enforcement Directorate imposed penalties totaling ₹5,238 crores in FY 2024-25, with FEMA investigations reaching 40,044 cases, of which 18,425 were already closed. The ED raids in the luxury vehicle smuggling case align with the agency’s broader strategy to target complex cross-border financial crimes involving foreign exchange violations.
- FEMA compounding penalties exceeded ₹60 crores in FY 2024-25, with 687 orders issued, highlighting persistent compliance gaps across sectors
- The Enforcement Directorate reported a conviction rate of 94% under Prevention of Money Laundering Act cases, demonstrating the agency’s effectiveness in financial crime prosecution
The ED raids also underscore growing concerns about national security implications of smuggling networks. Customs officials emphasized that syndicate capabilities extend beyond vehicle smuggling to include gold and drugs, with some seized vehicles suspected of carrying contraband materials. The ED raids aim to determine whether funds from such activities were used to finance other illegal operations, potentially including terrorist financing.
| FEMA Enforcement Statistics 2024-25 | Numbers |
|---|---|
| Total FEMA Investigations Initiated | 40,044 |
| FEMA Cases Already Closed | 18,425 |
| Total Penalties Imposed (₹ Crores) | 5,238 |
| Compounding Orders Issued | 687 |
| FEMA Compounding Penalties (₹ Crores) | 60.92 |
Source: ED Annual Report 2024-25 and AK & Partners Analysis
Final Assessment
The ED raids on Mammootty’s film production company and associated properties represent a watershed moment in India’s fight against sophisticated financial crimes involving luxury vehicle smuggling networks. The comprehensive nature of these ED raids, spanning 17 locations across two states, demonstrates the Enforcement Directorate’s commitment to dismantling complex cross-border smuggling operations that exploit regulatory loopholes and celebrity connections. The investigation reveals how criminal syndicates have evolved to use forged government documents and manipulate interstate registration systems to legitimize illegal imports worth crores of rupees.
The ED raids have exposed systemic vulnerabilities in India’s vehicle import and registration framework, particularly regarding luxury automobiles entering through neighboring countries like Bhutan and Nepal. With authorities estimating that up to 200 illegal vehicles entered Kerala alone, the scope of this smuggling network extends far beyond the celebrity connections that initially drew public attention. The ED raids serve as a crucial reminder that financial crimes involving foreign exchange violations carry severe consequences, with potential penalties reaching three times the contraventions value under FEMA regulations. As this investigation continues to unfold, the ED raids will likely establish new precedents for enforcement actions against luxury vehicle smuggling and associated FEMA violations in India’s entertainment industry.
