Tarun Karthick
Sri Vijaya Puram, 28 May 2025
The Communist Party of India (Marxist) has reiterated its demand for a thorough investigation by central agencies into what it alleges is a major corruption scandal involving the Andaman and Nicobar State Cooperative Bank Ltd. In a letter addressed to the Lt. Governor of the Andaman and Nicobar Islands, the CPI(M) urged the involvement of the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and Income Tax Department to unearth the full extent of the irregularities.
According to D. Ayyappan, Secretary of the CPI(M)’s Andaman and Nicobar State Organising Committee, recent media reports from both the islands and the mainland have highlighted the registration of an FIR against the Vice Chairman—who is reportedly also functioning as Chairman—of the State Cooperative Bank. The FIR pertains to the alleged fraudulent sanctioning of substantial loans to individuals and fictitious firms.
While no official statement has yet been released by the police or other authorities, the CPI(M) claims that multiple raids have been conducted in the past ten days. These reportedly include searches at the residences and offices of suspects, as well as at the bank itself.
In a resolution passed on March 1, 2025, the CPI(M) State Secretariat had already demanded a central investigation covering all loan sanctions and settlements made by the bank over the past 15 years. The party had also called for the immediate supersession of the bank’s managing committee and Board of Directors. A copy of this resolution was submitted to the Lt. Governor on March 3.
Highlighting what it describes as “large scale corruption, nepotism and mismanagement” in the functioning of the Andaman and Nicobar State Cooperative Bank Ltd, the CPI(M) asserted that the institution is controlled by the Congress Party. Ayyappan alleged that neither the central government nor the local administration had taken effective measures to address these longstanding concerns, despite multiple media reports raising red flags in recent years.
In his latest communication to the Lt. Governor, Ayyappan cited internal figures suggesting a staggering financial crisis in the bank. He claimed that from just 17 branches located in Sri Vijaya Puram and other rural areas of South Andaman, loans amounting to ₹866 crore remain outstanding, with ₹437 crore categorized as non-performing assets (NPAs). He further alleged that the bank had made no serious efforts to recover these dues.
The CPI(M) also pointed fingers at unnamed political leaders and businessmen who are allegedly close to the bank’s leadership, accusing them of defaulting on large bank loans. The party further claimed that just ahead of the 2024 Lok Sabha elections, the Andaman and Nicobar State Cooperative Bank sanctioned loans worth several crores to fictitious firms.
Reiterating its stance, the CPI(M) has called for swift and stringent action through central agencies to hold those responsible accountable and to restore public trust in the banking institution.