As China grapples with rising baldness, a network stretching from Hyderabad to Mizoram and Myanmar has surfaced, allegedly involved in illegal ammunition distribution. An ongoing investigation by the Enforcement Directorate (ED) has unveiled an Rs 11,793-crore human hair smuggling operation, revealing a convoluted money trail and purported money laundering through this three-way corridor. Insights have emerged into the methods used to funnel such illicit funds back to Hyderabad from traders operating in Myanmar.
According to a report of TOI, The funds are deposited and channeled through various accounts, with approximately Rs 2,491 crore in cash (over 21% of the total amount of Rs 11,793 crore) being deposited in such accounts. In February 2022, the ED conducted nationwide searches, revealing a significant hair-export racket through Myanmar.
Following the exposure of the modus operandi, the ED took swift action, initiating cases in 2021 against Nayla Family Exports Private Ltd based in Hyderabad. The company is accused of utilizing benami import-export codes (IEC), engaging in impersonation, and committing forgery. The illegal hair trade involved smuggling to Myanmar, Bangladesh, Vietnam, and China, utilizing routes including Hyderabad airport and other land routes.
Nayla purportedly established multiple shell (benami) entities to export hair at significantly undervalued rates. According to documents, these entities are dissolved whenever they encounter issues with tax authorities, and new import-export codes (IECs) are created. Payments, estimated at Rs 8,000 crore annually, are received through hawala channels.