NEW DELHI/IMPHAL: Enforcement Directorate (ED) has carried out raids at five locations in Imphal, Manipur, linked to Yambem Biren and Narengbam Samarjit, who had proclaimed themselves in 2019 as the ‘Chief Minister’ and ‘External Affairs & Defence Minister’ of a so-called “Manipur State Council”.
In a statement, the agency said both the accused were involved in money laundering through the Salai Group of Companies.
According to the ED, the case relates to a press conference held in London in 2019 wherein Biren, styling himself as the “Chief Minister of Manipur State Council”, and Samarjit, styling himself as the “External Affairs & Defence Minister of Manipur State Council”, publicly declared the “independence” of Manipur from the Union of India.
“They 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,” ED officials said.
On the basis of this, the NIA and the CBI have already registered cases against the accused persons.
The agency further said that the accused had established the “Kadangband Swajaldhara Implementation Committee” on May 30, 2003, which was later renamed Smart Society on August 10, 2008.
The accused also established another society named Salai Financial Services (SAFFINS), with its registered office at Sagolband Tera Loukrakpam Leikai in Imphal.
“The licence was granted subject to the provisions of the Bombay Money Lenders Act, 1946 (as extended to Manipur) and the rules made thereunder,” the agency added.
According to the ED, the accused, along with entities of the Salai Group of Companies, without any lawful authority, allegedly collected cash fraudulently from members of the public by promising exorbitant rates of interest.
Smart Society allegedly 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 disbursing interest thereon also only in cash.
“In total, Rs 57.36 crore was collected from gullible investors under different schemes. The money so collected from the public was routed and deposited into the personal bank accounts of the directors and into the accounts of the Salai Group of Companies and Smart Society,” the agency said.
The ED said the accused persons and entities derived proceeds of crime to the tune of Rs 57.36 crore from criminal activities related to the scheduled offence under the Prevention of Money Laundering Act (PMLA).
“The said proceeds of crime were diverted by the aforesaid persons to bank accounts of different companies of the 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 loans, vehicle loans, and term loans, etc,” the agency said.
The agency further alleged that the same was used for waging war against the State, sedition, and promoting disharmony, enmity and feelings of hatred among different groups.
“The investigation is ongoing, during which details of investments in immovable properties and incriminating materials have been found,” the agency said.