ED raids Imphal against key persons of Salai Group of Companies

New Delhi [India], December 17 The Enforcement Directorate (ED) on Wednesday conducted searches at five locations in Manipur's Imphal against accused persons who are the key persons of Salai Group of Companies, officials said.
The raids are underway since morning in close coordination with state police covering premises of one Yambem Biren, self- styled "Chief Minister of Manipur State Council", and Narengbam Samarjit, self-styled "External Affairs and Defence Minister of Manipur State Council".
As per the officials, privy to the development, the case relates to a press conference held in London in 2019 wherein Yambem Biren and Narengbam Samarjit publicly declared the "independence" of the state of Manipur from the Union of India, and by such prejudicial activities, engaged in acts amounting to waging war against the state, sedition, and promoting disharmony, enmity and feelings of hatred among different groups.
Imphal Sub Zonal office is conducting the searches based on a case already registered by the National Investigation Agency (NIA) and the Central Bureau of Investigation (CBI).
"In this case the accused established "Kadangband Swajaldhara Implementation Committee" on May 30, 2003 and this name was later changed to Smart Society on August 10, 2008," said the officials.
Thy said the accused also established another society named Salai Financial Service (SAFFINS) with its registered office at Sagolband Tera Loukrakpam Leikai, Imphal. "The license was granted subject to the provisions of the Bombay Money Lenders Act, 1946 (as extended to Manipur) and the rules made thereunder."
"The accused with the entities of Salai Group of companies, without any lawful authority, fraudulently collected cash from members of the public by promising exorbitant rates of interest. Smart Society functioned illegally as a non-banking financial company by accepting deposits exclusively in cash from the general public under the guise of membership fees, and disbursed interest thereon also only in cash," said the officials.
In total Rs 57.36 crore was collected from gullible investors under different schemes, they said.
"The monies so collected from the public were routed and deposited into the personal bank accounts of the Directors and into the accounts of Salai Group of Companies and Smart Society."
The officials also said "these persons and entities derived the proceeds of crime (POC) to the tune of Rs 57.36 crore from the criminal activities related to the schedule offence as defined under Section 2(1) (u) of the PMLA, 2002."
"The proceeds of crime were diverted by the aforesaid persons to bank accounts of different companies of Salai Group and the accounts of the aforesaid persons to acquire properties in their own name, in the name of group companies, repayment of home loan, vehicle loans, and Term Loans etc. The same was used for waging war against the government of India, sedition, and promoting disharmony, enmity and feelings of hatred among different groups," said the officials.
ED investigation in the case is ongoing, during which details of investments in immovable properties and incriminating materials have been uncovered.