ED conducts multi-state raids, including in Assam, Nagaland, over fake hair exports

New Delhi/Kohima, Nov 4: The Enforcement Directorate (ED) on Tuesday carried out simultaneous searches in Nagaland, Assam, and Tamil Nadu as part of a FEMA investigation into alleged illegal financial transactions under the guise of human hair exports, officials said.

The action, initiated by the ED’s Dimapur office, marks the first such operation under the Foreign Exchange Management Act (FEMA) by the agency’s Nagaland unit. Two premises each in Dimapur and Guwahati, and three in Chennai, were searched, officials confirmed.

The probe centers on a person named Lima Imsong and others. Investigations revealed that Imsong Global Suppliers Co., a sole proprietorship owned by Imsong, received foreign inward remittances purportedly for the export of human hair — an activity considered uncommon and commercially unviable in Dimapur.

Despite the passage of considerable time, the entity failed to submit essential export documentation such as shipping bills and export invoice copies to the authorised dealer bank within the prescribed timelines, officials said.

Such non-compliance with export obligations and suppression of required documents constitute violations of FEMA and Reserve Bank of India (RBI) directions, according to the agency.

The ED found that the foreign remittances received in Imsong Global’s bank account were diverted to another entity, Inchem India Pvt. Ltd., as well as to the personal accounts of Lima Imsong and his family members.

Officials said Inchem India Pvt. Ltd. is owned and controlled by Imsong. The company, previously dormant, became active only when inward remittances began flowing in. Despite the activity, it reported losses during the period under scrutiny and appeared to be a paper entity, the ED noted.

Funds received in Inchem India’s bank account were further diverted to certain “suspicious” entities involved in the trading of human hair in Chennai, officials added. The investigation is ongoing.

PTI