The Inner Line Regulation Commission (ILRC) of the Naga Students’ Federation has issued a strong warning against the continued proliferation of benami business practices—commonly referred to as “local fronting, proxy ownership, or nominee arrangements”—in Naga areas.
In a statement, the ILRC stated that these practices, wherein non-local individuals operate commercial establishments under the names of local Naga citizens to circumvent established regulations, constitute a direct violation of the legal and customary safeguards that protect Naga land, trade, and economic rights.
The Commission reiterated that such activities undermine not only statutory frameworks, including Inner Line regulations and trade licensing norms, but also the collective socio-economic security of the Naga people.
Highlighting that the Federation has been consistently objecting the menace of benami business since 1990s, the ILRC said despite repeated warnings, representations, and public awareness efforts spanning decades, the persistence—and in some areas, the expansion—of such illegitimate arrangements reflects a blatant disregard for both law and community sentiment.
In this regard, the Commission issues a “clear and unequivocal warning” to all non-Naga individuals presently engaged in any form of benami business, Local Fronting, Proxy Ownership, or Nominee Arrangements directing to cease such practices immediately.
“There will be no tolerance for attempts to exploit legal loopholes or misuse the names and identities of Naga citizens for commercial gain,” it cautioned.
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The Commission further cautioned local Naga individuals who knowingly enable such arrangements, describing the growing trend as “Rent-a-local” practices, where Naga identities are effectively leased out for financial gain, representing a deeply troubling erosion of collective responsibility.
“Such conduct is not merely unethical; it directly compromises the very protections that generations have struggled to secure, the Federation said adding, those engaging in these “Rent-a-local” arrangements must recognize that short-term personal benefit is coming at the cost of long-term community rights and economic sovereignty.
As part of an intensified enforcement approach, the ILRC announced that it would initiate surprise inspections and spot checks across commercial sectors to identify and expose benami operations, in coordination with relevant authorities where necessary. “These measures are intended not merely as symbolic actions, but as concrete steps toward dismantling entrenched systems of illegal proxy business activity,” it added.
The Commission also made a firm and non-negotiable demand for the immediate cessation of all
benami business practices, including all forms of “Rent-a-local” arrangements, in Naga areas.
“Any entity found to be in violation will be subject to public exposure and such action as deemed appropriate in defence of Naga rights and lawful economic order,” it said and reaffirmed its commitment to safeguard the interests, identity, and economic future of the Naga people.
