The Enforcement Directorate (ED) on Wednesday carried out searches at multiple locations in Manipur in connection with a money laundering probe involving leaders of a self-styled “Manipur State Council,” officials said.

At least five premises in Imphal were raided, linked to Yambem Biren, who claims to be the “Chief Minister” of the Manipur State Council, and Narengbam Samarjit, who styles himself as its “External Affairs and Defence Minister.”

According to the ED, the two are key figures behind the Salai Group of companies, which allegedly collected over ₹57.36 crore from the public through fraudulent investment schemes. The agency alleged that the funds were later used for activities amounting to waging war against the Government of India, sedition, and promoting disharmony.

London Declaration and NIA Case

The case stems from a 2019 press conference in London, where Biren and Samarjit allegedly declared Manipur’s independence from India. The act was termed “prejudicial to national integrity” by investigators.

The duo was earlier booked by the National Investigation Agency (NIA) and the CBI for offences related to sedition, conspiracy, and unlawful activities.

Ponzi-Style Operations

The ED said the accused had set up multiple entities over the years, beginning with the Kadangband Swajaldhara Implementation Committee in 2003, later renamed Smart Society in 2008. They eventually floated Salai Financial Service (SAFFINS), registered in Imphal.

Investigators found that Smart Society functioned illegally as a non-banking financial company (NBFC), collecting deposits in cash under the guise of membership fees and offering exorbitant returns.

“Funds were collected exclusively in cash and interest was paid in cash, bypassing regulatory oversight,” the ED said.

₹57.36 Crore ‘Proceeds of Crime’

According to the agency, the accused siphoned off ₹57.36 crore from unsuspecting investors, routing the money through personal and company bank accounts of the Salai Group and its directors.

“These funds constitute proceeds of crime and were allegedly used to finance activities aimed at undermining India’s sovereignty,” the ED alleged, adding that further action under the Prevention of Money Laundering Act (PMLA) is underway.