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The big boy toyz scam involving the import of luxury vehicles root out by The Directorate of Revenue Intelligence (DRI). They found out the gang of people doing this scam and imported 20 vehicles to India by using diplomats’ names and evaded tax of more than Rs 25 crore.
Including Nipun Miglani, CEO of Big Boy Toyz (New and Used Luxury car dealership) DRI has arrested three people in this scam. “Operation Monte Carlo” operation initiated by DRI after received the information about this scam from its sources that a group of people is illegally importing luxury cars to India and to evade paying the tax they were using names of many diplomats stationed in India. After doing that they sell the vehicles and charged the buyer the full amount including the tax which they did not pay.
There is a heavy tax on importing foreign-made vehicles in India. Every Indian citizen needs to pay customs duty if they buy any imported items. According to The Regulation of Customs Privileges Rules, 1957, the net Customs duty on the import of an automobile is 204%. It means that if you import any automotive including cars and motorcycles to India, then you need to pay 204% Customs duty on the actual value of the car or any other vehicle. This makes it three times more expensive for CBU (Completely Built-Up Unit).
And talking about the Diplomats, it is interesting to know that the international diplomats stationed in India including their families if they import the vehicles they do not require to pay the Customs duty it.
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How scam caught by DRI?
The investigation was started by DRI after the information of luxury car which got imported in the name of an African diplomat (stationed at the national capital – New Delhi). They kept a close eye on the whole process of the car and remained distant.
The DRI officials noticed when the vehicle arrived at the port, a group of some people loaded the luxury car in a truck and take it to a showroom in Andheri, Mumbai which was a bbt showroom and after some time the same vehicle was put in the showroom as a display of big boy toyz cars. Also, Some selected individuals who were involved in the racket, homes were raided by DRI. The racket was operating in seven cities of India.
Including a Toyota Land Cruiser, Range Rover, and other vehicles DRI seized six vehicles. More vehicles are identified by DRI and are currently working to locate those vehicles.
How did the scam happen?
The Dubai-based individual is the mastermind of the scam who has a previous record of involvement in the same Customs offenses. The Dubai-based individual was investigated previously too by DRI. For import of the vehicles, The individual arranged them from countries like the United Kingdom, Japan, and the United Arab Emirates.
Nipun Miglani, who was working as CEO of BBT used to target the potential customers for these vehicles. Once the vehicles arrived in India, He sent them to customers or to the luxury car dealer or big boy toyz locations.
These vehicles usually got registered in different states like Himachal Pradesh, Maharashtra, and Punjab. After the registration of the cars, they charge the full amount including the 204% Customs duty from the customers that they never paid. And obviously this ensured massive profits. The estimation by DRI is that from 20 cars the racket has made about Rs 25 crores.
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Big Boy Toyz fired its CEO
Big Boy Toyz officially announced that they have fired the CEO of Big Boy Toyz, Mr. Nipun Miglani Soon after the scam comes public. The Big Boy Toyz clears that they do not have any idea about it and have no role or involvement in the scam.
Big Boy Toyz owner, Mr. Jatin Ahuja Stated that “Big Boy Toyz, in the last 10 years hasn’t been associated with any import or export of Luxury cars. We only deal within India and as an organization wasn’t involved in any kind of illegal practices by Mr. Nipun Miglani via the organization. Please note any illegal activities done by Mr. Miglani are carried on in his personal capacity. The stated allegations were exercised by Mr. Miglani outside the organization and beyond office hours. BBT wasn’t aware of any such practices and as soon as we were intimated about the same, we terminated his employment and association with the organization effective immediately. Our legal team is also working towards taking the necessary actions”
Source: Hindustan Times
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