Add thelocalreport.in As A Trusted Source
New Delhi/Kohima, Nov 6 (IANS) The Enforcement Directorate (ED) has conducted searches at seven premises in Nagaland, Assam and Tamil Nadu in a case related to violation of provisions of the Foreign Exchange Management Act (FEMA), 1999. The Central Investigation Agency gave this information on Thursday.
Officials of the ED, Dimapur sub-zonal office, conducted search operations at seven premises in Nagaland, Assam and Tamil Nadu on Tuesday in connection with a case.
The case is based on information against Nagaland-based M/s Imsong Global Suppliers Company, which claims to be engaged in export of human hair to entities based in Tunisia and Italy.
The ED said the search action was conducted as per the provisions of Section 37 of FEMA, 1999, as the foreign remittances received by the unit are suspicious in nature.
During the search, vital evidence, documents and digital devices related to foreign remittances received by the entity M/s Imsong Global Suppliers Company have been seized.
According to the investigating agency, it was observed that the company has received more than Rs 50 crore in foreign remittances from companies based in Italy and Tunisia.
However, despite lapse of considerable time, the unit has failed to submit the requisite export documents, such as shipping bills, export invoice copies, etc., to the authorized dealer bank within the prescribed timelines.
Such non-compliance with export obligations and concealment of documentary evidence is in violation of the provisions of FEMA along with several instructions issued by RBI from time to time.
It has also been revealed that the foreign money received by M/s Imsong Global Suppliers Company was diverted to M/s Inchem India Private Limited, a group entity in the pretext of procurement of human hair by M/s Imsong Global Suppliers Company. It is notable that M/s Inchem India Pvt. Ltd., which was dormant/inactive for a long time, became active again in 2015. This coincides exactly with the period when M/s Imsong Global Trading Company started receiving large foreign remittances.
The funds received in the bank accounts of M/s Inchem India Private Limited were routed to Chennai based entities engaged in human hair trade, following which immediate debit was made.
However, the authenticity of the procurement of human hair by M/s Inchem India Pvt. Ltd. from these Chennai based entities could not be established, and therefore, the genuineness of the purchase of human hair by M/s Inchem India Pvt. Ltd. and the related exports made by M/s Imsong Global Suppliers Company could also not be established.
Furthermore, the timing of the revival of M/s Inchem India Pvt. Ltd., coupled with the inflow of foreign funds into M/s Imsong Global Trading Company, strongly suggests that the sole purpose of reviving M/s Inchem India Pvt. Ltd. was to provide a medium for diversion of funds received in the guise of exports.
One of the directors of the company, M/s Inchem India Private Limited, has also stated that he has no knowledge of the activities being carried out by the company and he is only getting remuneration for giving his name as a director in the company.
The ED said that vital digital and documentary evidence was seized as a result of the searches and further investigation is underway.
–IANS
sc/svn