The Enforcement Directorate (ED) has filed a supplementary prosecution complaint (SPC) against Manipur-based firm Birla Emporium, its director Yumnam Irabanta Singh, and others for allegedly defrauding 5,000 investors, officials said on Wednesday.
The probe agency's action stems from multiple cases filed by the Manipur CID (Crime Branch) against Singh, who also headed another company, Ira Finance.
Investigations revealed that between 2019 and 2021, Singh orchestrated a fraudulent deposit scheme, luring the public with promises of high returns. Instead, investor funds, estimated to be over Rs 250 crore, were siphoned off for personal gain.
According to the ED, Birla Emporium and Ira Finance operated unauthorized investment schemes and offered "Loan Against Property" deals. However, properties pledged by borrowers were allegedly transferred and registered in the names of company staff and directors through sale deeds, effectively dispossessing the original owners.
The scheme collapsed in early 2020, with the company shutting its doors and defaulting on investor payouts. Proceeds of Crime (PoC) were allegedly used to amass a portfolio of assets, including 85 immovable properties.
Assets worth Rs 28.02 crore - both movable and immovable - have been provisionally attached by the ED.
A prosecution complaint seeking confiscation of these properties was filed before a special PMLA court on June 6.
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