The Enforcement Directorate (ED)’s Imphal Sub Zone is conducting search operations at five locations in Imphal in a Prevention of Money Laundering Act (PMLA) case involving key individuals linked to the Salai Group of Companies.
According to the ED, the case stems from a press conference held in London in 2019, where Yambem Biren—who called himself “Chief Minister of the Manipur State Council”—and Narengbam Samarjit—styled as “External Affairs & Defence Minister of the Manipur State Council”—claimed Manipur’s independence from India.
Through these prejudicial activities, they are accused of engaging in acts amounting to waging war against the state, sedition, and promoting disharmony, enmity, and hatred among different groups.
Both the National Investigation Agency (NIA) and Central Bureau of Investigation (CBI) have previously registered cases against the accused.
The accused had earlier formed the Kadangband Swajaldhara Implementation Committee in 2003, later renamed Smart Society on August 10, 2008. They also set up Salai Financial Service (SAFFINS), licensed under the Bombay Money Lenders Act, 1946 (as extended to Manipur).
“The accused also established another entity named SALAI FINANCIAL SERVICE (SAFFINS), with its registered office at Sagolband Tera Loukrakpam Leikai, Imphal. The license was granted under the provisions of the Bombay Money Lenders Act, 1946 (as extended to Manipur) and the rules framed thereunder,” an official said.
The accused, through Salai Group entities, allegedly collected cash from members of the public fraudulently and without legal authority, promising exorbitant interest rates. Smart Society operated illegally as a non-banking financial company by accepting deposits exclusively in cash from the public under the guise of “membership fees” and disbursing interest only in cash. A total of ₹57.36 crore was collected from unsuspecting investors under various schemes.
The money collected from the public was routed and deposited into the personal bank accounts of the directors as well as into the accounts of the Salai Group of Companies and Smart Society.
The persons and entities involved derived proceeds of crime amounting to ₹57.36 crore from criminal activities classified under Section 2(1)(u) of the PMLA, 2002. These funds were diverted into bank accounts of various Salai Group companies and the personal accounts of the accused to acquire properties, repay home loans, vehicle loans, term loans, and other expenses. The same funds were allegedly also used for activities aimed at waging war against the Government of India, sedition, and promoting disharmony and hatred among groups.
The investigation is ongoing, and details of investments in immovable properties as well as incriminating materials have been uncovered so far.
