ILRC warns against benami trade, vows strict action

Inner Line Regulation Commission (ILRC) of the Naga Students’ Federation (NSF) has strongly warned against the continued proliferation of benami business practice– also known as local fronting, proxy ownership or nominee arrangements– in Naga areas.
In a press release, the ILRC described the practice of benami businesses as a serious threat to Naga land, trade and economic rights.
It said non-local individuals were operating commercial establishments using the names of local Naga citizens to bypass Inner Line regulations and other legal safeguards. The commission stated that such practices undermined statutory frameworks and the collective socio-economic security of the Naga people.
ILRC pointed out that NSF had been campaigning against benami businesses since the 1990s through repeated warnings, representations and public awareness drives.
Despite those long-standing efforts, the commission said the practice persisted and had even expanded in some areas. Therefore, ILRC has issued an ultimatum on all non-Naga individuals currently engaged in benami businesses, local fronting, proxy ownership or nominee arrangements to cease such activities immediately. It said there would be no tolerance for attempts to exploit legal loopholes or misuse Naga identities for commercial gain.
The commission also strongly cautioned local Naga individuals who knowingly enable these arrangements.
It described the growing “rent-a-local” trend– where Naga names and identities were leased out for financial benefit– as unethical and a serious erosion of community responsibility that compromises long-term Naga rights and economic sovereignty.
To enforce compliance, ILRC announced it would launch surprise inspections and spot checks across commercial sectors in coordination with relevant authorities. The commission warned that violations would result in public exposure and appropriate action to protect Naga rights and maintain lawful economic order.
ILRC has reiterated its firm commitment to safeguarding the identity, interests and economic future of the Naga people.