In an export business of human hair to Tunisia and Italy, the Enforcement Directorate carried out search operations at seven premises across Nagaland, Assam and Tamil Nadu, the agency said on Thursday. The raids were carried on October 4, for violations of the provisions of the Foreign Exchange Management Act, 1999. The agency sleuth received information that Imsong Global Suppliers Co — based in Nagaland — claimed to be engaged in the export of human hair to entities based in Tunisia and Italy, received Rs 50 crore foreign remittances suspiciously.
During the searches, crucial evidences, documents and digital devices relating to the foreign remittances received by the entity Imsong Global Suppliers Co have been seized. The company, despite considerable lapse of time, had failed to submit requisite export documentation such as shipping bills, export invoice copies amongst others to the authorised dealer bank within prescribed timelines. “Such non-compliance of export obligations and suppression of documentary evidences constitute contraventions of the provisions of the FEMA vis-à-vis several directions issued by RBI from time to time,” the agency said. During the investigation, it was found that the foreign remittances received by Imsong Global Suppliers Co. were further diverted to Inchem India Private Limited on the pretext of purchase of human hair.
The agency found that Inchem India Private Limited, which had remained dormant or inactive for a considerable period, was reactivated in 2015. This coincides precisely with the period when Imsong Global Trading Co commenced receipt of large foreign remittances.
The funds received in the bank accounts of Inchem India Private Limited were further diverted to the companies based in Chennai which are engaged in the trading of human hair, followed by immediate debits.
However, the authenticity of the purchase of human hair from these Chennai-based entities by Inchem India Private Limited could not be established and, therefore, the genuineness of the purchase of human hair by Imsong Global Suppliers Co. and the corresponding exports made also could not be established.
Further, the timing of revival of Inchem India, in tandem with the inflow of foreign funds to Imsong Global Trading Co., strongly suggests that the sole purpose of reviving the company was to provide a conduit for diversion of funds received in the guise of exports. During probe, one of the Directors in Inchem India Private Limited stated that he is not aware of the activities carried out by the company and is only getting the remuneration for lending his name as a Director in the company.
