CHENNAI: The Directorate of Enforcement has detected suspected violations of the Foreign Exchange Management Act (FEMA) exceeding Rs 50 crore after raiding two Chennai-based human hair export firms. The action follows the interception of a Senegalese national carrying undeclared US dollar equivalent to Rs 1.15 crore at Chennai airport.
The searches were conducted on July 15 on the premises of M/s Nandalala Enterprises and M/s Ram Hair Impex and those of their proprietors. The firms procure, process and export human hair, primarily to African countries.
According to the ED, the Senegalese national arrived in India through Mumbai without declaring the cash and had travelled from Mumbai to Chennai. The currency was seized as he failed to produce valid documents.
The agency said the man had been visiting India once every two months over the past two to three years, allegedly bringing foreign currency in cash to make payments to the two exporters instead of using authorised banking channels.
Officials recovered evidence indicating that export proceeds were received in foreign currency cash in violation of FEMA. The ED seized Rs 5.39 lakh in Indian currency, foreign currency worth USD 16,823 and Euro 1,860.