Tarun Karthick
Sri Vijaya Puram, 4 June 2025
The Centre of Indian Trade Unions (CITU) has urged the Andaman and Nicobar Administration to immediately supersede the Board of Directors of the Andaman and Nicobar State Cooperative Bank Ltd. and transfer the ongoing investigation by Andaman and Nicobar Police to central agencies including the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and Income Tax Department.
In a letter addressed to the Chief Secretary of the Andaman and Nicobar Islands, B. Chandrachoodan, General Secretary of CITU (A&N), alleged that corruption, nepotism, and mismanagement within the bank had severely undermined public confidence. He demanded the immediate arrest of all those involved, including the Chairman, Board Members, and senior officers of the Bank.
Chandrachoodan highlighted that the A&N Police have already registered a case against the Bank’s top officials, following which extensive raids have been conducted over the past 20 days at the Bank’s headquarters and the residences of several individuals, including businessmen who were allegedly granted large loans.
He noted with concern that despite the scale of the investigation, neither the Police nor the Cooperative Department has issued any public statement, while some mainland media outlets have reported on elements of the case. According to CITU, this lack of transparency has led to panic among depositors, prompting a wave of withdrawals from the Bank.
CITU also expressed concern for the job security of approximately 300 employees, including managers, currently working with the Bank. Chandrachoodan stressed that the Bank must continue to function to protect livelihoods.
Calling for decisive administrative intervention, CITU insisted that superseding the Board and initiating a central agency-led investigation would not only restore faith among depositors and employees but also protect ongoing centrally-sponsored schemes being implemented through the Bank, such as those supported by NABARD and HUDCO. The organisation also pointed out that the Bank is a key channel for disbursing social security pensions and EPF pensions to thousands across the islands, making its stable operation crucial.
CITU concluded its appeal by stating that a strong message of accountability and transparency is needed to reassure the public that the Bank’s future operations will be conducted in a fair and responsible manner. (Story Based on PR from CITU)