New Delhi [India], September 3 (ANI): The Enforcement Directorate (ED) has attached movable and immovable properties worth Rs 14.69 crore belonging to the Salai Group of Companies, SMART Society and their associated entities and persons in an ongoing money laundering case.
The assets comprise land, buildings, plant and machinery, and industrial and commercial units. ED's Imphal sub-zonal office attached the properties on September 2 following an attachment order.
ED investigation was initiated on the basis of a First Information Report (FIR) registered by Manipur Police against Yambem Biren, self-styled “Chief Minister of Manipur State Council,” and Narengbam Samarjit, self-styled “External Affairs and Defence Minister of Manipur State Council”.
The FIR alleged that the duo had declared the independence of Manipur State from the Union of India, thereby committing prejudicial acts such as waging war against the State, sedition, and promoting disharmony and enmity among different groups.
The National Investigation Agency (NIA) filed a charge-sheet against N Samarjit Singh, Y Biren, and others, which revealed that the accused fraudulently collected public money through SMART Society and the Salai Group of Companies, without any legal authority or licence, by promising returns of 36 per cent per annum.
ED said the accused laundered these funds through 19 group companies and used the proceeds for unlawful activities, including secessionist operations.
Salai Financial Services (SAFFINS) was registered under the Bombay Money Lenders Act, 1946, under which it was authorised only to lend money and not to accept deposits.
"The accused allegedly misused this registration to collect deposits from the public and operated like a bank and a Non-Banking Financial Company (NBFC) without Reserve Bank of India authorisation. The funds collected were routed through accounts of Directors and Salai Group Companies and laundered through investments in businesses and properties," said the agency in a statement.
The Central Bureau of Investigation (CBI) also registered an FIR in the matter, alleging that the deposit scheme operated as an illegal Ponzi and money-circulation racket.
ED investigation quantified the total Proceeds of Crime as Rs 76.63 crore, being cash deposits collected from the public without any legal authority.
ED said the Proceeds of Crime were routed through bank accounts of the Salai Group companies and their directors and were utilised for various purposes including business expenses, acquisition of assets, foreign remittances for purchase of machinery, payment of customs duty and income tax, foreign travel expenses of directors, credit card payments, and cash withdrawals through employees.
It further said that a portion of the proceeds was also used for the purchase of properties in cash.
Earlier, Rs 11.26 lakh lying in the bank account of Salai Mart Pvt Ltd and Rs 2.32 crore lying in the bank account of Salai Agri Consortium Pvt Ltd were provisionally attached on May 17, 2022 and November 9, 2022, respectively and confirmed by the adjudicating authority.
Subsequently, a Prosecution Complaint was filed before a special PMLA court in Imphal East in the matter.
Further, 28 immovable and five movable properties, held in the names of the Salai Group of Companies, SMART Society and associated entities, valued at Rs 50.80 crore, acquired out of the Proceeds of Crime were also identified and provisionally attached on March 13 this year.
So far, movable and immovable properties amounting to Rs 67.92 crore owned by SMART Society, Salai Group of Companies and their associated entities and persons have been attached. (ANI)
ED attaches Rs 14-cr assets of Manipur-based Salai Group in money laundering case
