The Central Bureau of Investigation (CBI) has launched a probe against Salai Group of Companies’s founder and chairman Narengbam Samarjit Singh, who was earlier arrested by the National Investigation Agency (NIA) in a case pertaining to formation of a self-styled organisation that declared Manipur an independent nation in London in October 2019.
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The anti-corruption probe agency has booked Singh, eight other individuals and 13 companies of Salai Group for allegedly running a ponzi or money circulation scheme and cheating a large number of investors by collecting deposits from them with a promise to pay 3% interest per month.
According to CBI’s first information report (FIR) registered earlier this month, “Salai Group of Companies, Imphal, registered under The Bombay Money Lenders Act, 1946, were not authorised to collect deposits from investors, but they had been illegally collecting deposits from its investors with a promise to pay 3% interest per month to them, as much as such the same was allegedly an illegal ponzi scheme/money circulation scheme”.
The federal agency also alleged that “a substantial amount of money has been taken away by the chairman and directors of Salai Group” through shell companies registered outside India, including Tokyo, Malaysia and Dubai.
{{/usCountry}}The federal agency also alleged that “a substantial amount of money has been taken away by the chairman and directors of Salai Group” through shell companies registered outside India, including Tokyo, Malaysia and Dubai.
{{/usCountry}}HT has seen a copy of the FIR.
The charges have been pressed under Indian Penal Code (IPC) and Banning of Unregulated Deposit Schemes Act, 2019.
At a press conference in London on October 29, 2019, Singh, along with one Yambem Biren, had declared Manipur’s independence from the Union of India and formation of Manipur State Council (MSC). While Biren was declared as a self-styled chief minister of Manipur’s government-in-exile, Singh appointed himself as its defence and external affairs minister.
Singh was arrested by NIA at Delhi airport after he returned from London in March 2021.
In the same month, NIA filed its charge sheet and subsequently attached several bank accounts linked to Singh and other accused in the case.
It was NIA that referred the matter to CBI for a thorough look into Singh’s companies as initial findings suggested that Salai Group had several firms in various countries abroad and money collected from investors was routed there.
CBI had written to the Manipur government in January last year, seeking permission to launch a probe, which was instantly approved. Biren is not named in CBI’s case.
In its approval letter, which is now part of CBI’s FIR, the Manipur government said that information “prime facie indicates that depositors, deposit takers or properties involved in the matter in question are located in more than one state/Union territory in India and even outside India and so that total value of amount involved may be such magnitude as to significantly affect the public interest”.
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According to people aware of the details, the directors of Salai Group and Biren are believed to be currently residing in London.
HT emailed several companies of Salai Group for a comment but did not get a response.