ED Conducts Raids in Multiple States Over Alleged Human Hair Export Fraud

The Enforcement Directorate has initiated a significant investigation into alleged financial irregularities linked to human hair exports, conducting simultaneous raids in Nagaland, Assam, and Tamil Nadu. The operation, which marks the first of its kind by the ED's Nagaland unit under the Foreign Exchange Management Act, focuses on Lima Imsong and his company, Imsong Global Suppliers Co. The investigation reveals potential violations of export regulations and the diversion of funds to suspicious entities. As the probe continues, the ED aims to uncover the full extent of the alleged fraud.

By Narendra Chaudhary Nov 4, 2025, 13:00 IST

Enforcement Directorate's Operation Across States

New Delhi/Kohima, Nov 4: On Tuesday, the Enforcement Directorate (ED) executed coordinated searches in Nagaland, Assam, and Tamil Nadu as part of an investigation under the Foreign Exchange Management Act (FEMA) concerning suspected illicit financial activities disguised as human hair exports, according to officials.

This operation, led by the ED’s Dimapur office, represents the agency's inaugural action under FEMA from its Nagaland division. Officials confirmed that two locations in Dimapur and Guwahati, along with three in Chennai, were targeted during the searches.

The investigation focuses on an individual named Lima Imsong and associated parties. Findings indicate that Imsong Global Suppliers Co., a sole proprietorship owned by Imsong, received foreign remittances allegedly intended for human hair exports—an unusual and economically unfeasible venture in Dimapur.

Despite the significant time elapsed, the company did not provide crucial export documents, including shipping bills and export invoices, to the authorized dealer bank within the required timeframe, officials stated.

This failure to comply with export regulations and the withholding of necessary documentation are deemed violations of FEMA and directives from the Reserve Bank of India (RBI), as per the agency's findings.

The ED discovered that the foreign remittances credited to Imsong Global’s bank account were redirected to another firm, Inchem India Pvt. Ltd., as well as to the personal accounts of Lima Imsong and his family.

Officials noted that Inchem India Pvt. Ltd. is owned and managed by Imsong. The company, which had been inactive, only commenced operations when foreign remittances started to arrive. Despite this activity, it reported losses during the investigation period and seemed to function merely as a paper entity, according to the ED.

Funds deposited in Inchem India’s bank account were subsequently funneled to various “suspicious” entities engaged in human hair trading in Chennai, officials added. The investigation remains ongoing.