Hyderabad: ED unearths human hair racket worth Rs 11.78 crore

Hyderabad Desk

Hyderabad: During a money laundering operation against city-based Nayla Family Exports Private Ltd on Tuesday, March 5, the Enforcement Directorate (ED) officials unearthed a human hair racket worth Rs 11,793 crore.

In 2021, the ED initiated an anti-money laundering operation against the firm, accusing it of benami import-export codes (IECs), impersonation and forgery. In February 2022, the ED conducted extensive searches nationwide, uncovering a secretive operation involving export of hair to Myanmar.

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According to reports, the racket was carried out through a three-way corridor covering Hyderabad, Mizoram and Myanmar. Human hair was transported to countries facing severe hair loss problems or alopecia. Some of them include China, Myanmar, Bangladesh and Vietnam.

The whole operation would be carried out either through Hyderabad Airport or other land routes, the TOI reported.

Modus operandi

The Nayla Family Exports used benami import-export codes (IECs) for its operations and transactions. The firm set up shell companies and exported hair at low prices. Whenever a shell company is discovered by income tax authorities or ED, it is automatically dissolved and a new import-export code is created subsequently.

It is alleged that the company garnered a staggering Rs 8,000 crore annually through this process. Furthermore, out of the Rs 11,793 crore unearthed, cash amounting to Rs 2,491 crore was deposited into various accounts through multiple channels.

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