ED's Unprecedented Raid: Nagaland's First Major FEMA Action

In a groundbreaking operation, the Enforcement Directorate has commenced its maiden search and seizure in Nagaland under FEMA, targeting Lima Imsong and others. The agency's investigation spans premises in Dimapur, Guwahati, and Chennai amidst allegations of unlawful foreign remittances masked as human hair exports.

The Enforcement Directorate (ED) has launched its first operation in Nagaland, conducting search and seizure actions under the Foreign Exchange Management Act (FEMA) on Tuesday. This move is linked to a case involving Lima Imsong, officials disclosed.

The ED's Dimapur Sub Zone has identified seven premises under investigation -- two located in Dimapur, two in Guwahati, and three in Chennai. This operation focuses on examining alleged financial irregularities surrounding Lima Imsong and his firm, Imsong Global Suppliers Co.

According to ED, Imsong's firm received substantial foreign inward remittances under the guise of exporting human hair -- a practice deemed uncommon and not commercially viable in Dimapur. Despite significant time lapses, the firm did not provide necessary export documents to its authorised bank, a breach of FEMA and RBI guidelines. These remittances were purportedly diverted to Inchem India Pvt. Ltd., controlled by Imsong, as well as to his personal and family accounts. Inchem India, a dormant entity until the start of these financial flows, is suspected of being a shell company due to its declared losses and paper-like operations. Suspicion surrounds entities in Chennai, allegedly linked to the trade of human hair and also under probe. These developments in Nagaland represent a crucial tightening of financial oversight in the Northeast.

(With inputs from agencies.)