IMPHAL, Dec 17: The Enforcement Directorate (ED) on Wednesday carried out searches at five locations in Imphal in connection with an ongoing money-laundering investigation involving Yambem Biren and Narengbam Samarjit, who had in 2019 proclaimed themselves as the “Chief Minister” and “External Affairs & Defence Minister” of a so-called “Manipur State Council”.

Officials said the searches were conducted by the ED’s Imphal Sub-Zonal Office at premises linked to the duo, both key figures of the Salai Group of Companies. The action is part of a probe into alleged unlawful financial activities and money laundering.

The case traces its origin to a 2019 press conference in London, where Biren and Samarjit declared the “independence” of Manipur from the Union of India. The agency has described these acts as prejudicial to national integrity and amounting to offences such as waging war against the State, sedition, and promoting disharmony among communities. Separate cases related to the matter have already been registered by the National Investigation Agency (NIA) and the Central Bureau of Investigation (CBI).

According to investigators, the accused had earlier set up the Kadangband Swajaldhara Implementation Committee in May 2003, which was later renamed Smart Society in 2008. They also established Salai Financial Service (SAFFINS), headquartered in Imphal, which operated under a licence issued under the Bombay Money Lenders Act, 1946.

The ED alleged that entities under the Salai Group illegally collected large sums of cash from the public by promising high returns. Smart Society is accused of functioning as an unregistered non-banking financial company, collecting deposits in the guise of “membership fees” and paying interest in cash. Officials claimed that around Rs 57.36 crore was mobilised from unsuspecting investors through various schemes.

The agency further alleged that the funds were diverted into personal and company accounts of the accused and were used to purchase properties, repay loans, and finance activities aimed at “waging war against the Government of India”. The funds have been classified as proceeds of crime under the Prevention of Money Laundering Act (PMLA).

During the searches, the ED said it uncovered details of investments in immovable properties and seized incriminating documents. Further investigation into the case is ongoing.