Director of Birla Emporiums held
Source: The Sangai Express

Imphal, May 07 2025: Yumnam Meghachandra, one of the Directors of Birla Emporiums Private Limited and IRA Finance Private Limited, has been arrested by the CID Crime Branch under Banning of Unregulated Deposit Schemes (BUDS) Act 2019 and taken to 3days police custody.

Yumnam Meghachandra (67) hails from Khurai Konsan Leikai and he was staying at Sambei Mamang Leikai.

Notably, a non-bailable warrant was issued against Yumnam Meghachandra on March 5, 2024, and as he was evading arrest the Chief Judicial Magistrate Imphal East had issued a proclamation against him on January 14, 2025 .

The CID Crime Branch arrested him from Sambei Mamang Leikai, Pangei Road, on May 6 and was produced before the Court of CJM Imphal East.

In the Court, the Assistant Public Prosecutor of the State submitted that the Birla Emporiums Private Limited was registered as a company limited by shares (a company which issues shares to the public) under the Companies Act on May 10, 2019 with Yumnam Meghachandra and his son, Yumnam Irabanta as signatories/Directors.

The objects to be pursued by the company, given in its Memorandum of Association (MoA), did not include any banking and money circulating business.

While the company has been found not registered with the regulators for NBFC (Non-Banking Financial Company) like RBI, SEBI, BML Manipur (Cooperative Societies Manipur), it has been found concealing this fact and accepted deposits from the public and sanctioned loans to the public, said the Prosecutor.

Further, the application forms for depositors and loanees are found to have been issued in the name of Birla Emporiums Private Limited while the passbooks and loans against property, service loans were issued in the name of Ira Private Limited, said the Prosecutor.

Further, various bank accounts of Birla Emporiums Private Limited have been found used for online transfers/transactions of deposits, payment of interests and EMIs, added the Prosecutor.

Interestingly, during investigation, no substantive source of income of Birla Emporiums Private limited has been found other than the deposits made by the public.

This was found when the investigators looked into the tentative lists of particulars of depositors/investors for an amount of approximately Rs 253 crore, lists of loanees for an amount of approximately Rs 108 crore and other relevant details, said the Prosecutor.

The Court was further told that Yumnam Irabanta dishonestly misappropriated the depositors' money entrusted to his company to pursue activities for personnel benefits in conspiracy with one Khangembam Chingkheinganba of Thoubal Athokpam.

The statement of account under the name of Chingkheinganba Trading Private Limited with HDFC Thoubal Branch has revealed various transactions with Birla Emporiums Private Limited, said the Prosecutor.

Further, Birla Emporiums Private Limited has not filed any statutory report and financial statement since its incorporation on May 10, 2019 as per available record at ROC (Registrar of Companies) Guwahati.

The company has also not filed return of income for the assessment years 2019-20, 2020-21 & 2021-22.Yumnam Irabanta Singh too has not filed any ITRs for AY 2020-21 and 2021-22, said the Prosecutor.

Like the Birla Emporiums Private Limited, the IRA Finance Private Limited is also not registered with any of the regulators for NBFC like RBI, SEBI and BML Manipur, and is prohibited from operating banking businesses.

However, the two companies are found to be intricately linked in their functioning and found to be functioning with the same Directors, Yumnam Irabanta and Yumnam Meghachandra and employing the same set of employees.

Both the companies have been found using the same bank accounts for transactions of deposits made by depositors, and these companies have been functioning as a single entity.

The companies have been performing banking activities concealing the fact that they are not registered with the regulators for NBFC, which is highly suspicious of a malafide intention to cheat the public of their hard earned money, said the Prosecutor.

Submitting that the accused, Yumnam Meghachandra Singh has admitted to the charges levelled against him, the Prosecutor prayed the Court to send him to police custody for 3 days.

The Court after hearing the submissions, remanded the accused to police custody till May 9 .

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