ED attaches assets worth ₹50.80 crore in Salai Group case

The Enforcement Directorate (ED) has provisionally attached assets worth ₹50.80 crore pertaining to the Salai Group of companies, SMART Society, and associated entities, in a case allegedly linked to self-styled “Chief Minister of Manipur State Council” Yambem Biren and others.

The attached properties include balances lying in bank accounts, land and buildings, and industrial and commercial units of rice and flour mills, edible oil refinery, mushroom plant, emu/fish farms, and gym equipment in the name of various companies of the Salai Group, the ED said.

The ED’s probe is based on a First Information Report registered at Lamphel police station in Imphal West, Manipur, against Yambem Biren and and Narengbam Samarjit, the self-styled “External Affairs & Defence Minister of Manipur State Council”. They face charges of waging war against the State, sedition, promoting disharmony, enmity or feeling of hatred among different groups, etc., by declaring the independence of Manipur from the Union of India at a press conference held in London in 2019.

The National Investigation Agency has chargesheeted the accused and others, alleging that they fraudulently collected public money through the Salai Group and its affiliate SMART Society by promising 36% annual returns without any legal authority or licence. “They laundered these funds through 19 Group companies and used the money for unlawful activities, including secessionist operations,” the ED said.

The Salai Financial Services (SAFFINS) was registered under the Bombay Money-Lenders Act. It was authorised only to lend money and not to accept deposits. However, the accused misused the registration to collect deposits from the public and operated like a bank/non-banking financial company without the Reserve Bank of India’s authorisation.

“The funds collected were routed through accounts of directors and Salai Group companies and laundered through business investments and properties,” it said.

Subsequently, the Central Bureau of Investigation registered a case on March 15, 2023, alleging an illegal Ponzi/money circulation scheme. It filed a chargesheet on November 9, 2024, stating that ₹46.43 crore was allegedly collected from the public and deposited in bank accounts of the accused and related entities.

According to the ED, during the probe, about ₹11.26 lakh in the bank account of Salai Mart Private Limited and about ₹2.32 crore in the bank account of Salai Agri Consortium Private Limited were provisionally attached, which was later confirmed by the Adjudicating Authority under the Prevention of Money Laundering Act. The agency also filed a prosecution complaint.

The ED found that the proceeds of the alleged crime were routed through the bank accounts of Salai Group entities and directors. They were used for 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. A portion, in cash, was also invested in properties, as alleged.

The agency identified 28 immoveable and five moveable properties in the names of Salai Group of companies, SMART Society and associated entities linked to the proceeds. “In this regard, the said properties amounting to ₹50.80 crore have been provisionally attached,” an official said, adding that the total value of attached assets in the case so far is now about ₹53.22 crore.