- Probe agency ED conducted its first-ever search in Andaman and Nicobar Islands linked to Rs 200 crore fraud
- Raids were also held at nine locations in Port Blair and two premises in Kolkata simultaneously
- Cooperative bank allegedly gave loans to shell companies, violating banking norms
In a major development, the Enforcement Directorate (ED) on Wednesday carried out its first-ever search operation in the Andaman and Nicobar Islands. The operation is linked to an alleged Rs 200 crore loan fraud involving the Andaman Nicobar State Cooperative Bank (ANSCB).
According to the ED, simultaneous raids were conducted at nine locations in and around Port Blair and two premises in Kolkata. The searches are part of an ongoing money laundering investigation connected to large-scale financial irregularities in loan disbursals by the cooperative bank.
During the search, ED officials recovered incriminating documents suggesting that ANSCB extended loan and overdraft facilities to shell companies by flouting established banking norms. The central agency claims that around 15 companies/entities were set up to illegally route funds, allegedly for the benefit of Kuldeep Rai Sharma, the former Member of Parliament from Andaman and Nicobar Islands.
Crucially, the ED alleges that these entities fraudulently availed over Rs 200 crore in loans, with significant amounts withdrawn in cash and allegedly funneled to Mr Sharma. The former MP is also listed as the Vice-Chairman of ANSCB, raising concerns over conflict of interest and potential misuse of position.
The investigation was launched following an FIR registered by the Crime and Economic Offences Wing of the Andaman and Nicobar Police, naming private individuals as well as officials of the cooperative bank.
ED's search marks a historic first for the island territory and underscores the agency's growing focus on unearthing financial crimes in remote administrative zones.
More details are awaited as the operation continues.
