IT Raid at Royal Drive: ₹102 Crore Tax Evasion in Luxury Car Retail

Income Tax raid at Royal Drive’s luxury car centers uncovers ₹102 crore tax evasion. Suspected money laundering and ongoing investigation. Detailed info awaited.

IT Raid at Pre-Owned Luxury Car Company Royal Drive Centers; ₹102 Crore Tax Evasion; Suspected Money Laundering

The Income Tax raid took place at the centers of Royal Drive, a major player in the pre-owned luxury car retail industry. Indications are that tax evasion of ₹84 crore has been discovered. The raid was conducted at the four centers of the company, which is headed by Mujeeb Rahman from Malappuram.

Royal Drive’s showrooms sell cars such as Audi, Jaguar, BMW, Lexus, Mercedes Benz, Bentley, Lamborghini, Volvo, Land Rover, Porsche, and Mini Cooper. Celebrities, including movie stars, are customers of Royal Drive. The raid, which began yesterday evening, is still ongoing, and no one has been allowed to leave. The main office of Royal Drive is located in Vytilla, Kochi.

The Income Tax Department has found that there was fraud involved in concealing the actual price related to the sales. Detailed information is yet to be released. It is alleged that transactions are being conducted through Royal Drive instead of through the bank. The income tax raid is based on the suspicion of money laundering through cash transactions.

Mujeeb Rahman’s Passion for Cars Led to Royal Drive

Mujeeb Rahman’s passion for cars led him into the retail sales of pre-owned luxury cars. This turned into a major turning point, and Royal Drive grew into a company with a turnover of ₹120 crore. After studying the pre-owned car market for a long time, Mujeeb, who was involved in other businesses including in the Gulf, entered the market. Recently, a new showroom was opened in Thiruvananthapuram. In addition to luxury cars, Royal Drive showrooms also have luxury bikes.

The first showroom for luxury vehicles was opened in 2016 in Mujeeb’s hometown of Malappuram. Showrooms were also opened in Kozhikode in 2018, Kochi in 2022, and Thiruvananthapuram in January of this year. Plans are in place to open showrooms outside Kerala and in foreign countries. A workshop named Royal Drive Care has been started in Kochi for luxury vehicles. There are plans to open workshops in Thiruvananthapuram in addition to Kozhikode.

Tax Evasion Allegation Amidst Rapid Growth

Currently, Royal Drive Smart sections for budget cars have been opened in Malappuram and Thiruvananthapuram. The largest pre-owned showroom in the country is being set up in Kochi. The tax evasion allegations have surfaced amidst efforts to grow into a ₹1000 crore company within the next five years.

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