Enforcement Directorate Conducts Raids in Imphal Over Fraudulent Investment Scheme

The Enforcement Directorate carried out extensive searches at several locations in Imphal, the capital of Manipur, on Wednesday, advancing a money laundering investigation into individuals accused of illicitly gathering more than Rs 50 crore through deceptive investment schemes. Agency officials revealed that the collected funds were purportedly channeled into endeavors designed to challenge the sovereignty of the Government of India, constituting serious offenses under relevant laws.

A minimum of five properties associated with Yambem Biren, who proclaims himself as the chief minister of a self-declared Manipur state council, and Narengbam Samarjit, positioning himself as the external affairs and defence minister of the same entity, underwent thorough raids. These persons are regarded as principal operatives within the Salai Group of companies, with the operations centered around fraudulent financial activities that exploited public trust.

The probe originates from a notable 2019 event in London where Biren and Samarjit publicly proclaimed the separation of Manipur from the Indian Union. The Enforcement Directorate has categorized this proclamation as an act prejudicial to national integrity, equivalent to waging war against the state, committing sedition, and deliberately inciting disharmony, enmity, and hatred across various societal groups.

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Prior to the ED's involvement, the accused faced registration of cases by the National Investigation Agency and the Central Bureau of Investigation for related anti-national conduct. Further allegations detail their establishment of organizations starting with the Kadangband Swajaldhara Implementation Committee in 2003, subsequently rebranded as Smart Society in 2008, and the creation of Salai Financial Service with headquarters in Imphal, all purportedly to facilitate unauthorized financial operations.

Investigations have uncovered that the network amassed approximately Rs 57.36 crore by enticing investors with promises of exceptionally high returns, operating without regulatory authorization as a non-banking financial entity. Deposits were accepted predominantly in cash under the pretext of membership contributions, with interest payments similarly disbursed in cash, and the proceeds ultimately redirected to personal and corporate accounts for alleged subversive purposes, including the propagation of communal discord.

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