ED Provisionally Attaches Rs 50.8Cr Assets In Manipur Financial Fraud Case

(MENAFN- IANS) New Delhi/Imphal, March 16 (IANS) The Enforcement Directorate (ED) has issued its third Provisional Attachment Order (PAO), attaching properties worth Rs 50.8 crore linked to several Manipur-based private companies and their associated entities, according to sources in the central probe agency.

The ED's Imphal Sub-Zonal Office issued the third PAO, attaching properties worth Rs 50.8 crore pertaining to the Salai Group of Companies, SMART Society and associated entities.

The attached properties include balances lying in bank accounts as well as movable and immovable assets held in the names of various companies of the Salai Group.

These assets comprise land and buildings along with industrial and commercial units such as a rice mill, flour mill, edible oil refinery, mushroom plant, emu farms, a fish farm and gym equipment, the ED said in a statement.

The ED said that the investigation was initiated on the basis of an FIR registered by Manipur Police at Lamphel Police Station in Imphal West district under various sections of the Indian Penal Code (IPC), 1860 against Yambem Biren, self-styled“Chief Minister of Manipur State Council”, and Narengbam Samarjit, self-styled“External Affairs and Defence Minister of Manipur State Council”.

They were accused of prejudicial activities such as waging war against the state, sedition and promoting disharmony, enmity or hatred among different groups by declaring the independence of Manipur from the Union of India.

The National Investigation Agency (NIA) later filed a charge sheet against N. Samarjit Singh, Y. Biren and others under IPC sections 120B and 420, along with various provisions of the Unlawful Activities (Prevention) Act, 1967.

The investigation revealed that the accused allegedly collected public money through the Salai Group and its affiliate SMART Society by promising a 36 per cent annual return without any legal authority or licence.

According to the ED, the funds were laundered through 19 group companies and used for unlawful activities, including secessionist operations.

Salai Financial Services (SAFFINS), registered under the Bombay Money-Lenders Act, was authorised only to lend money and not to accept deposits.

However, the accused allegedly misused this registration to collect deposits from the public and operated like a bank or non-banking financial company (NBFC) without authorisation from the Reserve Bank of India.

The funds collected were routed through accounts of directors and Salai Group companies and laundered through business investments and property purchases.

Subsequently, the Central Bureau of Investigation (CBI) registered an FIR on March 15, 2023 under various sections of the IPC and provisions of the Banning of Unregulated Deposit Schemes Act, 2019, alleging that the scheme functioned as an illegal Ponzi or money circulation scheme.

The CBI filed a charge sheet on November 9, 2024, revealing that Rs 46.43 crore was fraudulently collected from the public and deposited in the bank accounts of the accused and related entities.

During the course of the investigation, about Rs 11.26 lakh lying in the bank account of Salai Mart Pvt Ltd and around Rs 2.32 crore in the bank account of Salai Agri Consortium Pvt Ltd were provisionally attached, which were later confirmed by the Adjudicating Authority.

Subsequently, a prosecution complaint was filed before the Special Court (PMLA) in Imphal East district.

Further investigation revealed that the proceeds of crime were routed through bank accounts of Salai Group companies and their directors and were used for various purposes, including business expenses, acquisition of assets, foreign remittances for machinery purchases, payment of customs duty and income tax, foreign travel expenses of directors, credit card payments and cash withdrawals through employees.

A portion of the proceeds was also used for the purchase of properties in cash.

The investigation led to the identification of 28 immovable properties and five movable properties in the names of Salai Group of Companies, SMART Society and associated entities that were acquired using the proceeds of crime.

Accordingly, these properties worth Rs 50.8 crore have been provisionally attached.

So far, a total of Rs 53.22 crore worth of movable and immovable properties linked to the Salai Group of Companies and associated entities has been provisionally attached.

Further investigation is underway.

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