Malayalam film stars Dulquer Salmaan, his father Mammootty, and Prithviraj Sukumaran were among those whose homes and offices were raided by the Enforcement Directorate (ED) on Wednesday morning, as the agency investigated an alleged luxury car smuggling racket spanning Kerala and Tamil Nadu.

The action, rare for its accompanying public statement even before the searches concluded, followed Dulquer’s challenge to Customs in the Kerala High Court over the seizure of his Land Rover Defender.

The ED said the raids, covering 17 locations from Ernakulam to Coimbatore and Chennai, were linked to suspected violations of the Foreign Exchange Management Act (FEMA). Dulquer’s Chennai residence on Greams Road was also searched by a team of three officers.

Officials allege that a Coimbatore-based network smuggled high-end vehicles such as Land Cruisers, Defenders, and Maseratis into India via Bhutan and Nepal, using forged documents and hawala transactions. The cars were then sold at undervalued rates to high-net-worth buyers, including film celebrities.

On Tuesday, the Kerala High Court directed Dulquer, who had challenged the Customs seizure, to approach the adjudicating authority under the Customs Act for the provisional release of his vehicle, while questioning the strength of Customs’ evidence.

“What evidence do you have? No information even in sealed cover,” Justice Ziyad Rahman A A asked Customs.

“We are on the question of seizure. Nobody would prevent you from carrying out any inspection or investigation, but here you are denying a person of his property, purchased by spending his money.”

Dulquer’s petition stated that he purchased the vehicle in good faith nearly five years ago, paying through bank channels and possessing customs clearances, invoices, and delivery notes. He added that the original importer was the International Committee of the Red Cross (ICRC) in New Delhi.

The ED’s public statement said: “The Kochi Zonal Office is conducting search operations under FEMA, 1999 on 08 October 2025 at 17 locations across Kerala and Tamil Nadu in connection with the ongoing probe into smuggling of high-end luxury vehicles and unauthorised foreign exchange dealings.”

According to preliminary findings, the network allegedly used forged documents purportedly from the Indian Army, US Embassy, and Ministry of External Affairs to obtain fraudulent Regional Transport Office registrations in states such as Arunachal Pradesh and Himachal Pradesh. The vehicles were subsequently sold at undervalued rates to wealthy buyers, including film personalities.

The ED suspects prima facie violations of Sections 3, 4, and 8 of FEMA, involving unauthorised foreign exchange transactions routed through hawala channels. “Further investigation is underway to trace the money trail, beneficiary network, and foreign exchange movement,” the agency said.

In Kochi, searches targeted Dulquer’s Kadavanthra residence, Mammootty’s long-time home—popularly known as “Mammootty House”—as well as properties linked to businessmen and several dealers across central Kerala.

Similar operations were conducted in Ernakulam, Thrissur, Kozhikode, Malappuram, Kottayam, and Coimbatore.

Sources said the ED’s decision to issue a press statement before completing the searches was influenced by controversies during prior raids, when a senior officer had to abruptly cancel a briefing amid criticism over drawing conclusions prematurely.

The raids follow “Operation Numkhor,” conducted by the Customs Preventive Commissionerate in Kochi on September 23, which seized 36–37 luxury cars suspected to have been smuggled via the Indo-Bhutan corridor. Some vehicles, including those registered to Dulquer and actor Amit Chakkalakkal, were impounded. The operation also revealed that some cars had been used to smuggle gold and drugs.

The inclusion of Mammootty’s family has intensified the spotlight on the case, placing Dulquer at the center of a high-profile cross-border investigation.

“The vehicle was shipped by the International Committee of the Red Cross to the ICRC Regional Delegation in New Delhi,” Dulquer’s petition stated, emphasizing that he acted in bona fide belief regarding the vehicle’s ownership and registration.

The ED clarified that the investigation was part of a systemic syndicate and not focused on any single actor, highlighting an organized network allegedly engaged in illegal import and registration of luxury vehicles alongside unauthorised foreign exchange dealings.