ED searched five premises in Imphal in a money laundering case linked to alleged separatist leaders.
The case involves an alleged ₹57.36 crore fraud through cash-based investment schemes.
NIA and CBI have also registered cases over sedition and waging war allegations.
The Directorate of Enforcement (ED) on Tuesday carried out searches at five premises in Imphal in connection with a money laundering investigation against two men who had projected themselves as the “Chief Minister” and “External Affairs & Defence Minister” of a so-called “Manipur State Council”, according to The Hindu.
Those searched have been identified as Yambem Biren and Narengbam Samarjit, who allegedly styled themselves as the head of government and defence and external affairs minister of the purported body. The action follows a probe into the alleged collection of more than ₹50 crore from the public through what investigators say was a fraudulent investment scheme, The Hindu reported.
According to agency officials, the searches are linked to a case involving the Salai Group of Companies, of which the two accused are key figures. The ED is examining the matter under the Prevention of Money Laundering Act (PMLA), following allegations that large sums were mobilised from investors on the promise of high returns.
The case also stems from a press conference held in London in 2019, where Yambem Biren, claiming to be the “Chief Minister”, and Narengbam Samarjit, presenting himself as the “External Affairs and Defence Minister” of the Manipur State Council, declared the “independence” of Manipur from the Union of India, according to The Hindu.
In parallel proceedings, the National Investigation Agency (NIA) has filed a chargesheet against the two accused and their associates. “By such prejudicial activities, they engaged in acts amounting to waging war against the State, sedition, and promoting disharmony, enmity and feelings of hatred among different groups. Based on this, the National Investigation Agency and the Central Bureau of Investigation have already registered cases against accused persosns,” an official said.
Investigators stated that the accused had earlier set up an entity named “Kadangband Swajaldhara Implementation Committee” on May 30, 2003, which was later renamed Smart Society on August 10, 2008. They also established another society, Salai Financial Service (SAFFINS), with its registered office at Sagolband Tera Loukrakpam Leikai in Imphal. The licence for SAFFINS was granted subject to the provisions of the Bombay Money Lenders Act, 1946, as extended to Manipur, and the rules framed under it.
According to the ED, the accused, through various entities under the Salai Group, fraudulently collected money in cash from the public by offering 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 we thereon also only in cash. In total Rs.57.36 crore was collected from gullible investors under different schemes. 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 official said.
The ED has alleged that the accused persons and entities derived proceeds of crime amounting to ₹57.36 crore from these activities, bringing the case under the ambit of the PMLA. Officials said the funds were diverted into personal bank accounts and accounts of different Salai Group companies, and were used for acquiring properties, as well as for repayment of home loans, vehicle loans and term loans.
“The same was used for waging war against the Government of India, indulging in sedition, and promoting disharmony, enmity and feelings of hatred among different groups, as alleged,” the official added.
The two accused were initially booked by the NIA and the Central Bureau of Investigation, and the ED’s searches form part of the continuing probe into both the alleged financial irregularities and the separatist activities linked to the case, The Hindu reported.
(With inputs from The Hindu and PTI)
