ED searches in Nagaland human hair export FEMA case

The Enforcement Directorate (ED) on Tuesday (November 4, 2025) conducted simultaneous searches in Nagaland, Assam and Tamil Nadu as part of a FEMA investigation into alleged illegal financial transactions under the garb of human hair export, officials said.

The action was initiated by the Dimapur office of the federal probe agency.

Two premises each in Dimapur and Guwahati and three in Chennai were searched under the provisions of the Foreign Exchange Management Act (FEMA). This is the first such action undertaken under the said law by the ED Nagaland office, the officials said.

The investigation pertains to a person named Lima Imsong apart from some others.

It was found that a company named Imsong Global Suppliers Co., sole proprietorship of Lima Imsong, received foreign inward remittances on the pretext of export of human hair - an activity which is uncommon and commercially "unviable" in Dimapur.

Despite considerable lapse of time, the said entity failed to submit requisite export documentation such as shipping bills, export invoice copies amongst others to the authorised dealer bank within prescribed timelines, ED officials said.

Such non-realisation of export obligations and suppression of documentary evidences constitute contravention of the FEMA and RBI directions, they said.

Probe found that foreign remittances received in this (Imsong Global) bank account were "diverted" to an entity named InchemIndia Pvt. Ltd. and to the personal accounts of Lima Imsong and his family members.

Inchem India Private Limited is "owned and controlled" by Lima Imsong, the officials said.

"The company was dormant and became active only during the period Lima Imsong started receiving inward remittances. The company has declared loses during the period under consideration and seems to be a paper entity," the ED probe found.

The money received in the bank account of Inchem India Pvt Ltd was "diverted" to certain "suspicious" entities engaged in the trading of human hair in Chennai, officials said, adding the probe was ongoing.