Guwahati, Jan. 2: The Imphal sub-zonal office of the Directorate of Enforcement (ED) has issued a second provisional attachment order (PAO) attaching assets worth Rs 33.66 crore in connection with an alleged large-scale investment fraud pertaining to two private companies.
A statement issued by the ED informed that the PAO relates to a case of alleged cheating of around 5,000 investors in Manipur by the private companies – M/s Birla Emporium Pvt Ltd, M/s Ira Finance Pvt Ltd, and their director Yumnam Irabanta Singh.
The ED investigation was based on an FIR registered against Singh by the CID (crime branch), Manipur, under Sections of the IPC, including Section 1860.
It was alleged in the FIR that between the years 2019 and 2021, Singh operated a fraudulent investment and deposit scheme through his companies, promising high returns to the investors. “But finally, he (Singh) and his associates had siphoned off several individual depositors’ funds,” the statement said.
Investigation by the ED revealed that the scheme was unauthorised and resulted in wrongful losses to investors amounting to more than Rs 2.50 crore, while generating corresponding wrongful gains for the accused.
It was further revealed that the companies also provided loans to the public against property under the loan against property (LAP) model. However, the properties of borrowers were allegedly transferred and registered in the names of directors and staff of M/s Birla Emporium Pvt Ltd through sale deeds.
“The company closed its door to the depositors in the first quarter of 2020 without returning the promised funds to depositors,” the statement said.
“The properties registered in the names of promoters were also kept in their custody without returning them, and the proceeds of crime were subsequently utilised for acquiring multiple properties,” it added.
