Case surrounding Salai Holdings : Why bank accounts frozen, asks Court
Source: The Sangai Express

Imphal, December 04 2020: Chief Judicial Magistrate Imphal West on December 1 pulled up the Investigating Officer probing SMART Bank directing it to submit a fresh report by December 15 clarifying on whose authority and why bank accounts of different units of Salai Holdings Private Limited have been frozen.

The Court of the CJM Imphal West passed the order in connection with a report submitted by Additional SP (Law and Order), Imphal West regarding freezing of 36 accounts of Salai Holdings Private Limited.

The report submitted by the Additional SP (Law and Order), Imphal West mentioned that a case was registered by the Imphal Police Station on March 3 on receipt of a written complaint by one Chingtham Tomcha of Thangmeiband Hijam Dewan Leikai against the Salai Holdings Private Limited.

The written complaint alleged that on December 1, 2015, he (Tomcha) had deposited Rs 40,000 at the SMART Private Bank located at Uripok Khumanthem Leikai and when he later visited the bank for withdrawal of some money and updation of his account, the bank was found closed.

Despite many attempts, he could not meet and talk to the bank officials of SMART and hence suffered huge losses.

The complainant accused SMART bank of cheating.

The report submitted by the Additional SP said that investigation revealed SMART Private Bank was functioning under Salai Holdings Private Limited.

The Board of Directors were examined in connection with the case and strong prima facie evidence were established against Salai Holdings Private Limited that its branches had cheated many individuals by promising huge interest on their deposits.

The SMART Bank was found to have collected direct deposit of money or cash against the rules of RBI and fraudulently operating the company.

The report further mentioned that a case had already been registered against then Managing Director of Salai Holdings Private Limited, Narengbam Samarjit and others by Lamphel Police Station which is now being handled by the NIA.

During further course of investigation, the NIA provided details of 36 accounts of different units of Salai Holdings Private Limited including 9 bank accounts of Narengbam Samarjit and they were frozen on November 26 and November 27, said the report.

On perusal of the report, the Court observed that the complainant had filed the complaint against the SMART Private Bank, however there was no mention of SMART Private Bank in the list of accounts frozen.

Stating that the Special Judge NIA had already passed an order for de-freezing all accounts of Salai Holdings Private Limited, the Court observed that the submitted report failed to mention on whose authority the accounts of Salai Holding Private Limited were frozen.

"It is questionable whether the IO (Investigating Officer) has the authority to seize the said accounts," said the Court and directed the IO to submit fresh report returnable on December 15 clarifying on whose authority and why the accounts were frozen with the view for avoiding further legal complications.

The Court fixed December 15 for next hearing.

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