New Delhi/Kohima: The Enforcement Directorate (ED) on Tuesday carried out simultaneous searches across Nagaland, Assam, and Tamil Nadu in connection with an alleged case of illegal foreign exchange dealings disguised as human hair exports, officials confirmed.
The searches were conducted under the provisions of the Foreign Exchange Management Act (FEMA) and were initiated by the ED’s Dimapur office. According to officials, two locations each in Dimapur and Guwahati and three in Chennai were covered during the operation. This marks the first FEMA-related enforcement action undertaken by the ED’s Nagaland office since its establishment. The raids targeted entities and individuals suspected of using the human hair trade as a front to move funds abroad in violation of foreign exchange laws.
Officials said the investigation aims to uncover the scale of the suspected financial irregularities and identify possible links to export firms involved in the trade. Documents, digital records, and transaction details were reportedly seized for scrutiny.
Human hair exports, a legitimate business in parts of India, have recently come under increased regulatory attention following reports of fake documentation and over-invoicing by certain operators to facilitate illicit money transfers. “The searches are part of a broader effort to detect and prevent misuse of export channels for unlawful foreign exchange transactions,” an official said, adding that further action will depend on the outcome of forensic and financial analysis.
The ED’s operation reflects the Centre’s growing focus on tightening oversight of unconventional export sectors that could be exploited for money laundering or hawala activities.
