ED Attaches ₹50.80 Crore Assets of Salai Group in Manipur Ponzi, Secession Funding Case

Moneylife Digital Team 17 March 2026

Economy & Nation

The directorate of enforcement (ED) has provisionally attached assets worth ₹50.80 crore linked to the Salai group of companies, SMART Society and associated entities in connection with an alleged illegal deposit scheme and money laundering case with links to unlawful activities in Manipur. The action was taken by the ED's Imphal sub-zonal office under the Prevention of Money Laundering Act (PMLA), marking the third provisional attachment order in the case.

With this, the total value of assets attached in the case has risen to ₹53.22 crore.

According to ED, the attached properties include bank balances as well as movable and immovable assets held in the names of various Salai group entities. These comprise land parcels, buildings and multiple industrial and commercial units such as rice mills, flour mills, an edible oil refinery, a mushroom plant, emu farms, a fish farm and gym equipment.

The agency says it identified 28 immovable and five movable properties acquired from proceeds of crime and moved to attach them as part of the ongoing investigation.

The ED probe stems from a first information report (FIR) registered by Manipur police at Lamphel police station in Imphal West district against individuals, including Yambem Biren and Narengbam Samarjit.

The accused allegedly declared an independent 'Manipur State Council' and were booked for serious offences, including sedition, waging war against the state and promoting enmity.

Subsequently, the national investigation agency (NIA) filed a charge-sheet against the accused under provisions of the IPC and the Unlawful Activities (Prevention) Act (UAPA).

Investigations revealed that funds were mobilised from the public through the Salai group and its affiliate SMART Society by promising returns as high as 36% annually, without any legal authority.

ED says the scheme functioned as an unauthorised deposit-taking operation, with funds routed through 19 group companies.

While Salai Financial Services was registered under the Bombay Money Lenders Act, it was authorised only to lend money and not accept deposits. However, the accused allegedly misused this registration to run operations similar to a bank or non-banking finance company (NBFC) without approval from Reserve Bank of India (RBI).

Funds collected from investors were allegedly diverted through multiple channels, including business investments and asset acquisition, foreign remittances for machinery purchases, payment of customs duties and taxes, foreign travel and credit card expenses and cash withdrawals routed through employees.

A portion of the funds was also allegedly used for acquiring properties in cash.

The case is also being investigated by central bureau of investigation (CBI), which registered an FIR in March 2023 under IPC provisions and the Banning of Unregulated Deposit Schemes Act, 2019.

According to the CBI charge sheet filed in November 2024, around ₹46.43 crore was fraudulently collected from the public and deposited in accounts linked to the accused and their entities.

Earlier, ED had attached bank balances worth over ₹2.43 crore belonging to Salai group entities, which were later confirmed by the adjudicating authority. A prosecution complaint has also been filed before the Special Court (PMLA) in Imphal East.

ED says further investigation is underway to trace additional proceeds of crime and establish the full extent of financial irregularities and alleged misuse of funds.

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