New Delhi/Imphal, March 16 (NationPress) The Enforcement Directorate (ED) has announced its third Provisional Attachment Order (PAO), securing assets valued at Rs 50.8 crore linked to various private companies in Manipur and their affiliates, as per sources from the central investigative body.

The Imphal Sub-Zonal Office of the ED executed this latest PAO, focusing on properties associated with the Salai Group of Companies, SMART Society, and related entities.

The seized assets encompass funds in bank accounts alongside both movable and immovable properties owned by the Salai Group.

These assets include land, buildings, and operational facilities such as a rice mill, flour mill, edible oil refinery, mushroom production plant, emu farms, a fish farm, and gym equipment, according to a statement by the ED.

The investigation commenced following an FIR filed by the Manipur Police at the Lamphel Police Station in the Imphal West district, targeting Yambem Biren—self-proclaimed “Chief Minister of Manipur State Council”—and Narengbam Samarjit, who claims to be the “External Affairs and Defence Minister of Manipur State Council.”

These individuals face allegations of engaging in activities detrimental to the state, including waging war, sedition, and inciting discord among various groups by declaring Manipur's independence from India.

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

Investigations revealed that the accused allegedly gathered public funds through the Salai Group and its affiliate, SMART Society, by offering an extravagant 36 percent annual return without any legal authorization or license.

The ED indicated that these funds were laundered via 19 group companies and utilized for illicit activities, including secessionist efforts.

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

However, the accused reportedly exploited this registration to solicit deposits from the public, functioning like a bank or a non-banking financial company (NBFC) without appropriate authorization from the Reserve Bank of India.

The collected funds were channeled through the accounts of directors and Salai Group companies and subsequently laundered via business investments and property acquisitions.

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

The CBI's charge sheet, filed on November 9, 2024, revealed that Rs 46.43 crore was fraudulently collected from the public and deposited into the accounts of the accused and associated entities.

During the investigation, approximately Rs 11.26 lakh from Salai Mart Pvt Ltd and about Rs 2.32 crore from Salai Agri Consortium Pvt Ltd were provisionally attached, later confirmed by the Adjudicating Authority.

A prosecution complaint was subsequently submitted to the Special Court (PMLA) in the Imphal East district.

Further investigations uncovered that the proceeds of crime were funneled through bank accounts belonging to Salai Group companies and their directors, utilized for various purposes, including business expenses, asset acquisitions, foreign remittances for machinery purchases, customs duty and income tax payments, foreign travel expenditures of directors, credit card settlements, and cash withdrawals by employees.

A segment of the proceeds was also used for cash property purchases.

The investigation successfully identified 28 immovable properties and five movable assets under the names of Salai Group of Companies, SMART Society, and related entities, acquired using the proceeds of crime.

Consequently, these properties valued at Rs 50.8 crore have been provisionally attached.

To date, a total of Rs 53.22 crore in movable and immovable properties linked to the Salai Group and associated entities has been provisionally attached.

Further investigations are ongoing.