At least 380 people have been arrested on charges of extortion in Manipur amid the ongoing ethnic conflict, the number reflecting how widespread the problem has become and is “adversely impacting the future” of the strife-hit state.

The persons have been arrested in ongoing police crackdown following public complaints on charges of extortion, including 130 members of local gangs and underground outfits and 250 indirectly involved with extortion till Monday.

There have been protests by educational institutions, LPG distributors, Imphal-Moreh Transport Association in July against extortion, donations and illegal taxation.

The All Naga Traders Association, Manipur (ANTAM) had called for an indefinite economic blockade of NH2 that connects Imphal with Moreh from October 8 in protest against “unchecked” extortion and illegal taxation but was suspended temporarily following intervention of the Naga People’s Organization (NPO).

Last week, the police said that extortion cases have increased after the conflict began and they have formed an anti-extortion cell headed by an Additional DGP at the state-level, and 15 district-level teams, to curb extortion.

According to the police, members of underground groups and local gangs are indulging in extortion by exploiting the law and order situation triggered by the conflict.

While welcoming the police steps to check extortion, an Imphal-based businessman told The Telegraph that “extortion, donation and taxation” have become an issue of “huge concern” amid the conflict, which erupted between the Meiteis and Kuki-Zos on May 3, 2023, leaving at least 237 dead and over 60000 displaced from both communities.

The businessman said extortion is bleeding the economy, impacting educational institutions, government employees, LPG distribution, transportation of goods, all businesses, leading to “at least 30 per cent rise” in prices of most products and goods.

“There have been frequent protests against extortion which has impacted all communities. The police crackdown has come after lodging of multiple complaints. We welcome the ongoing initiative. Besides intervention of police and public, MLAs of the ruling coalition have to do more to check widespread extortion which is adversely affecting the future of Manipur,” the businessman said.

Manipur has a BJP-headed coalition government since 2017.

Manipur PCC president K Meghachandra Singh on Tuesday hit out at the ruling BJP on growing cases of extortion, asserting it was “adversely affecting” Manipur’s future.

“New extortion industries have become completely successful in Manipur under Double Engine BJP Govt. The promise of 2 crores jobs to youth of India every year by PM Modi ji announced in 2014 and 1.5 lakh jobs to the unemployed youth of Manipur every year by Chief Minister announced in 2017 have all become a complete lie to our youths and the unemployed,” he posted on X, trying to link the rise in extortion to unemployment in the state.

Meghachandra added: “All are pained by daily violent extortion with gun and bomb threat and have become heartbroken....The ongoing extortion on daily basis and direct threat and attacks to the people have destroyed the future of Manipur.”