Malayalam film stars Mammootty, his son Dulquer Salmaan and Prithviraj Sukumaran were among those whose homes and offices were searched on Wednesday morning as the Enforcement Directorate (ED) carried out raids across Kerala and Tamil Nadu in connection with an alleged luxury car smuggling racket.The action – rare for being accompanied by a public statement from the ED even before searches concluded – came just a day after Dulquer, son of superstar Mammootty, challenged Customs in the Kerala High Court over the seizure of his Land Rover Defender.The agency said the raids, spanning 17 locations from Ernakulam to Coimbatore to Chennai, were linked to suspected violations of the Foreign Exchange Management Act (FEMA). A residence of Dulquer in Chennai’s Greams Road is also being searched by a team of three officers.Officials alleged that a Coimbatore-based network smuggled high-end cars such as Land Cruisers, Defenders, and Maseratis into India via Bhutan and Nepal, relying on forged papers and hawala transactions. Vehicles were then sold at undervalued rates to high-net-worth buyers, including film celebrities.On Tuesday, the court directed Dulquer, who challenged the Customs, to approach the adjudicating authority under the Customs Act for the provisional release of his vehicle, while questioning Customs officials on the strength of their evidence.For weeks, law enforcement agencies have been circling the alleged racket. On September 23, Customs (Preventive) Commissionerate, Kochi, carried out “Operation Numkhor” – the name drawn from the Bhutanese word for vehicle – seizing 37 luxury cars suspected to have been smuggled into Kerala through the Indo-Bhutan corridor. Several of those vehicles, including multiple cars registered to Dulquer and another actor, Amit Chakkalakkal, were impounded.During the HC hearing on Tuesday, Justice Ziyad Rahman A A noted that provisional release was a right under Section 110A of the Customs Act, directing that if Customs refused such release, it could only do so through a “speaking order” that addressed the actor’s documents and contentions. Dulquer’s petition argued that he purchased the vehicle in good faith nearly five years ago, paying through bank channels and armed with customs clearances, invoices, and delivery notes. The original importer, he said, was the International Committee of the Red Cross in New Delhi.Story continues below this ad“What evidence do you have? No information even in sealed cover,” the court asked Customs during the hearing on Tuesday. “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,” the Judge said.Meanwhile, the public statement from the central agency on Wednesday sought to project clarity where Customs had been on the defensive. “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,” it said.According to the agency, preliminary findings reveal a Coimbatore-based network that relied on forged documents purporting to be from the Indian Army, the US Embassy, and the Ministry of External Affairs. Using these, the network allegedly secured fraudulent Regional Transport Office registrations in far-flung states such as Arunachal Pradesh and Himachal Pradesh. Once registered, the vehicles — Land Cruisers, Defenders, and Maseratis among them — were sold at undervalued rates to wealthy buyers, including film stars.ED officials said prima facie violations of Sections 3, 4, and 8 of FEMA had been detected, involving unauthorised foreign exchange transactions and payments routed through hawala. “Further investigation is underway to trace the money trail, beneficiary network, and foreign exchange movement,” the statement said.Story continues below this adIn Kochi, searches were conducted not only at Dulquer’s Kadavanthra residence but also at Mammootty’s long-time home, popularly known as “Mammootty House.” Officers also searched properties linked to some businessmen and several dealers across central Kerala.While the inclusion of Mammootty’s family has magnified the scandal, Dulquer, one of the most bankable stars of his generation with crossover roles in Hindi and Tamil films, now finds himself at the centre of a high-profile case.The ED’s decision to issue a detailed press release even before concluding its searches surprised many. Unlike Customs, which has faced judicial pushback for seizing vehicles without airtight evidence, the ED’s probe argues that this was not an isolated investigation into a single actor’s car but part of a systemic, cross-border syndicate.According to sources known to the probe, the decision to issue an advance public statement this time was shaped by recent controversies: during the earlier search, a senior officer was forced to abruptly call off a press briefing after receiving instructions from higher-ups, amid criticism that he had rushed to draw conclusions before the investigation was complete.