Imphal, March 16: The Enforcement Directorate (ED) has taken significant action against an alleged illegal financial network operating in Manipur, temporarily attaching assets worth ₹50.80 crore. This operation is linked to the Salai Group of Companies, Smart Society, and other associated entities. The ED has issued a third provisional attachment order in this regard.
The attached assets include not only bank deposits but also immovable and movable properties. These assets consist of land, buildings, and various industrial and commercial units, including rice mills, flour mills, food oil refineries, mushroom plants, emu farms, fish farms, and gym equipment. These properties were found registered under the names of different companies within the Salai Group.
The investigation was initiated based on an FIR registered by the Manipur police at the Lamphal police station in Imphal West district. The accused in the case are Yambem Biren and Narengbam Samarjeet, who are alleged to have promoted activities aimed at declaring Manipur separate from the Union of India, leading to serious charges of waging war against the state, sedition, and inciting hatred among various groups.
The National Investigation Agency (NIA) has filed a chargesheet against Narengbam Samarjeet Singh, Yambem Biren, and other accused individuals. The chargesheet indicates that the accused raised funds illegally from the public through the Salai Group and its affiliate Smart Society, enticing individuals with promises of a 36% annual return on investments, despite lacking any valid license or authority to do so. This money was allegedly laundered through 19 companies of the Salai Group and purportedly used for separatist activities among other illegal operations.
The investigation revealed that Salai Financial Services was registered under the Bombay Money Lenders Act, which only permitted the institution to lend money. However, the accused allegedly misused this registration to accept public deposits. The institution operated like a bank or NBFC without obtaining any permission from the Reserve Bank of India (RBI). The deposited amounts were subsequently circulated through company accounts, personal accounts of directors, and various investments.
Later, the CBI registered an FIR on March 15, 2023, invoking sections 120B and 420 of the Indian Penal Code and provisions of the Banning of Unregulated Deposit Schemes Act, 2019.
The CBI’s investigation revealed that the entire network was functioning like an illegal Ponzi and money circulation scheme. On November 9, 2024, the agency filed chargesheet number 87/2024, stating that the accused defrauded the public of over ₹46.43 crore.
During the investigation, the ED initially attached approximately ₹11.26 lakh from the bank account of Salai Mart Private Limited and around ₹2.32 crore from Salai Agri Consortium Pvt. Limited. These attachments were later confirmed by the Adjudicating Authority. Following this, the ED also filed a prosecution complaint in the special court under the PMLA in Imphal East.
Further investigation revealed that the proceeds of crime were used for business expenses, property purchases, machinery imports, customs duties, income tax payments, directors’ foreign trips, credit card payments, and cash withdrawals through employees. Some amounts were also used to purchase assets in cash.
The ED identified 28 immovable and 5 movable properties linked to the Salai Group, Smart Society, and associated institutions, allegedly purchased with the proceeds of crime. In total, assets worth ₹50.80 crore have been attached. According to the ED, a total of ₹53.22 crore in movable and immovable assets belonging to the Salai Group and its associated institutions have been temporarily attached so far. The agency stated that further investigations are ongoing, and more actions may follow in the future.