Enforcement Directorate (File) Investigations into Chinese betting mobile applications has led the Enforcement Directorate (ED) to unearth a massive racket allegedly smuggling Indian hair illegally to China through Myanmar. The central agency, claiming the smuggling network to be spread across from Hyderabad to Aizawl, has conducted searches across the country in the case and frozen 139 bank accounts, apart from recovering Rs 1.2 crore in cash.
According to the ED, the searches, conducted on February 9 and 10, spread from Hyderabad to Champhai in Mizoram, the border town with Myanmar.
“These searches were conducted in money laundering investigation pertaining to smuggling of raw human hair from India to Myanmar through illegal land routes via Mizoram generating huge cash. A large part of cash thus generated was used for making illegal compensatory payments through unauthorised channels for smuggled hair & under-valued exports of human hair from entities spread across India,” the ED said in a statement.
The agency initiated a money-laundering investigation after it came across large hawala payments to local hair traders in the fund trail investigation of online Chinese betting mobile applications.
“Subsequently, based on the ED’s complaint, CCS Hyderabad Police registered a fresh FIR under various Section of IPC Act, 1860, wherein, it was alleged that one M/s Nayla Family Exports Private Limited (Director Md Ibrahim Patel) exported human hairs by using benami Import Export Code (IEC) of multiple local proprietary firms,” the statement said.
The ED claims large scale domestic sales of raw human hair was taking place from Andhra Pradesh and Telangana to Guwahati and Kolkata.
“All this domestically sold hair was ultimately finding its way to China via Myanmar and sale proceeds were surprisingly being received from shell Bank Accounts in Mizoram. ED conducted fund trail investigation and zeroed in on the …shell entities based in Mizoram which were taking in hundreds of crores of cash deposits and then remitting the deposited amount to several hair merchants spread across India,” the ED statement said.
These entities were identified by the ED as M/s St Mary’s Gem Industries Champai, M/s Sun Moon Human Hair Champai and M/s Thari Enterprises Aizwaland.
According to the ED, one Lucas Thangmangliana (resident of Champhai district) is the chief facilitator of this mammoth hawala operation.
“ED has seized various incriminating documents, handwritten diaries, digital devices & also recovered cash of Rs 1.20 Crore. ED has identified various suspicious Bank A/cs which were being used for huge cash deposits. Accordingly, ED has issued freezing order under PMLA against such 139 Bank accounts. Statements of Bankers and account holders are being recorded,” the statement said.
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