Tarun Karthick
Sri Vijaya Puram, 21 July 2025
A formal complaint has set off what has become one of the most closely watched investigations in the Andaman and Nicobar Islands this year. At the center of it is the Andaman and Nicobar State Cooperative Bank Limited (ANSCBL), where alleged irregularities in loan sanctioning have prompted a multi-layered inquiry involving arrests, document seizures, and the examination of a vast paper trail.
The matter came to light after the Deputy Registrar of Cooperative Societies (HQ) lodged a complaint regarding serious irregularities in how loans were being sanctioned by the bank. Following this, the Crime and Economic Offences Wing of the Andaman and Nicobar Police registered FIR No. 00014/2025 on May 15, 2025. Senior Superintendent of Police (CID) Jitendra Kumar Meena confirmed the registration of the FIR and stated that the investigation was underway.
According to the investigation, which remains ongoing, the irregularities involve alleged violations of core banking norms. These include the bypassing of loan screening committee recommendations, ignoring of CIBIL reports and credit assessments, and sanctioning of loans without required documentation. In some cases, site verification reports were submitted without signatures, and loans were reportedly disbursed to applicants deemed unfit as per existing banking procedures. These issues have raised questions about how the internal checks and systems of the bank were being followed during the loan disbursement process.
Further scrutiny revealed financial activity that has attracted the attention of investigators. There were reports of large withdrawals being made over short periods, manipulation in property valuation certificates, and unusual fund movements to accounts held by individuals such as a driver, a tea stall owner, and a mechanic.
In June 2025, then Managing Director of ANSCBL, K. Murugan, shared details about the bank’s financial position. He stated that the bank held ₹1,336 crores in total deposits, including ₹250 crores invested in the Food Corporation of India, ₹246 crores in Government of India bonds, and ₹86 crores in fixed deposits with other banks. He also stated that ₹575 crores worth of loans were classified as standard (non-NPA) and the bank’s gross NPA had reduced to 32%.
As part of the investigation, arrests began in late June. On June 25, three individuals were arrested in connection with suspicious bank transactions — Bablu Halder, Director of Andaman Mormon Infrastructure Private Limited; Tarun Mondal, Director of Blair Enterprises Private Limited; and Ajay Minz, Director of Andaman Treepie Adventure Private Limited. On June 27, the police arrested the then Managing Director of the bank, K. Murugan, and another bank employee, Kalaivanan. The arrest trail continued into July. On July 8, K. Subramanian, Vice Chairman of ANSCBL, and M. Sajid, owner of M/s Andaman Escapades, were taken into custody.
A major development occurred on July 18 when former Member of Parliament & former Chairman and Vice Chairman of Andaman and Nicobar State Cooperative Bank Ltd., Kuldeep Rai Sharma, was arrested from Dr. Ritika’s Diagnostic Solutions Multi-Speciality Hospital in Sri Vijaya Puram, where he was undergoing treatment for health issues.
The investigation has uncovered the presence of multiple shell companies allegedly used to route loans. Multiple directors of such companies have been questioned. The accounts of several firms under scrutiny have been frozen. According to officials, multiple suspected loan files have been seized during the course of the investigation. Forensic audit experts have been engaged to trace the flow of funds.
Several officials of ANSCBL have been questioned, and the investigation team, led by SSP Jitendra Kumar Meena, continues to examine the documents, statements, and financial records tied to the case.
Manickam Tagore, Congress MP and party in-charge for the Andaman and Nicobar Islands, commented on the developments during his visit to the islands. He termed the investigation “politically motivated” and suggested that it was aimed at defaming the Congress party. “Investigation agencies including police, CBI and ED are excellent storytellers. They always plant such stories against us in the national media,” he said.
Meanwhile, in a video statement released in June 2025, K. Murugan, then serving as Managing Director of ANSCBL, attempted to reassure customers that the bank was safe and that depositors had no reason to worry. He noted that the bank is governed by the Reserve Bank of India and NABARD, and that all deposits are insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5 lakh per depositor.
As of July 18, 2025, a total of eight individuals have been arrested in connection with the case. The investigation is ongoing and is expected to continue in the coming weeks. With multiple companies, officials, and financial documents under examination, the outcome of the case remains uncertain. What is clear, however, is that the case has drawn significant public attention and may have wider implications for cooperative banking oversight and operational integrity in the islands.
In the wake of the arrest of Kuldeep Rai Sharma, Manickam Tagore also released a video statement condemning the action. In the video, he termed the arrest as harassment by the BJP and RSS and affirmed that the entire Congress family stands firmly in support of Kuldeep Rai Sharma.
