The Enforcement Directorate (ED) on Tuesday carried out its first-ever search and seizure operations in Nagaland under the Foreign Exchange Management Act (FEMA), targeting multiple premises linked to businessman Lima Imsong and others.

According to officials, the ED’s Dimapur Sub-Zone conducted searches at seven locations two each in Dimapur and Guwahati, and three in Chennai as part of an ongoing probe into alleged irregular foreign remittances.

Preliminary investigations revealed that Imsong Global Suppliers Co., a proprietorship firm owned by Lima Imsong, had received substantial foreign inward remittances purportedly for exporting human hair. Officials described this trade from Dimapur as “uncommon and commercially unviable.”

The agency stated that the firm failed to submit mandatory export documents, including shipping bills and invoices, to the authorised bank within the prescribed time, violating provisions of FEMA and Reserve Bank of India (RBI) regulations.

The ED further alleged that the remitted funds were diverted to Inchem India Pvt. Ltd. and to personal accounts belonging to Imsong and his family members. Investigations suggested that Inchem India, though presented as a separate entity, was effectively controlled by Imsong and had remained inactive until the receipt of foreign funds.

Officials said the company reported losses during the relevant period and appeared to function as a paper entity, routing money to several Chennai-based firms already under investigation for suspicious human hair trade activities.

The searches mark the ED’s first enforcement action under FEMA in Nagaland, a development viewed as a significant step toward enhancing financial oversight in the Northeast.