ED conducts first-ever FEMA search in Nagaland; raids seven locations linked to Lima Imsong

Dimapur (Nagaland), November 4 (ANI): In its first action in Nagaland, the Enforcement Directorate (ED) on Tuesday launched search and seizure operations under the provisions of the Foreign Exchange Management Act (FEMA) in connection with a case involving Lima Imsong and others, officials said
According to officials, the agency's Dimapur Sub Zone covered a total of seven premises -- two in Dimapur, two in Guwahati, and three in Chennai -- as part of its investigation.

ED claims its initial findings reveal that Imsong Global Suppliers Co., a sole proprietorship firm owned by Lima Imsong, allegedly received large sums of foreign inward remittances on the pretext of exporting human hair, an activity described by investigators as "uncommon and commercially unviable" in Dimapur.
The ED noted that, despite a considerable lapse of time, the firm failed to furnish the requisite export documentation -- such as shipping bills and export invoices -- to the authorised dealer bank within the prescribed timelines.
This non-compliance, officials said, constitutes violations under FEMA and related RBI guidelines.
"The foreign remittances received in this bank account were further diverted to an entity named Inchem India Pvt. Ltd. and to the personal accounts of the proprietor, Shri Lima Imsong, and his family members," the agency said.
Investigators added that Inchem India Pvt Ltd, though shown as a separate company, was actually owned and controlled by Imsong. The firm was dormant for years and became active only after Imsong began receiving foreign remittances.
"The company has declared losses during the period under consideration and appears to be a paper entity," the officials in ED said.
The funds received by Inchem India were allegedly diverted to several suspicious entities in Chennai, which are purportedly engaged in the trading of human hair and are also under investigation.
The searches mark the first FEMA enforcement action by the ED in Nagaland, signalling a major step in tightening financial scrutiny in the Northeast. (ANI)