Investigations revealed that the accused had floated several entities, including the Kadangband Swajaldhara Implementation Committee, later renamed Smart Society, and another society named Salai Financial Service (SAFFINS). While SAFFINS had a licence under the Bombay Money Lenders Act, authorities allege the entities illegally functioned as non-banking financial companies by accepting deposits exclusively in cash under the guise of membership fees.

The ED said Smart Society and Salai Group entities collected Rs 57.36 crore from unsuspecting investors under various schemes. The funds were allegedly deposited into the personal accounts of directors and group companies, and later used to acquire properties, repay loans and finance other expenditures.

According to the agency, the money constituted proceeds of crime under the Prevention of Money Laundering Act (PMLA), 2002, and was diverted to waging war against the GOI sedition, and promoting disharmony, enmity and feelings of hatred among different groups. The investigation is ongoing, with authorities uncovering details of investments in immovable properties and other incriminating materials during the searches.