The young man, named locally as Akash, received the BMW 3-Series as a birthday gift from his parents.
But he was unhappy with the car, say local police, because it was too small for him and his mates.
So a few months after receiving the £32,000 car he drove it into the Western Yamuna Cana in Yamunanagar, India, and sent video of the incident to his parents.
The soggy motor was recovered a few hours later with the aid of divers, earth-moving equipment and a little muscle power from local townsfolk.
“We never imagined he would do anything like this”
A police official said: “The youth was arrogant and kept insisting that he be given a Jaguar as a BMW is a little small for him and his friends inside.
“We would do a preliminary investigation but this seems to be a personal matter.
“We will proceed according to the law.”
The lad’s father, Sanjeev Kumar, said: “I wanted to give my son a birthday present.
“We could only afford to give him a BMW, while he kept on insisting that he be given a Jaguar.
“He said the vehicle was too small but we thought he will be okay.
“We never imagined he would do anything like this.”
The family later denied the story, though.
They told the Times of India that while Akash “had certain mental health issues” he had not driven the car into the canal deliberately and had just swerved to avoid an antelope that was crossing the road.
He dad said: “We have two cars, a BMW and a Swift. My son never demanded a Jaguar.”