Tarun Karthick
Sri Vijaya Puram, 17 September 2025
The Directorate of Enforcement (ED), Kolkata Zonal Office, has arrested three persons, namely Kuldeep Rai Sharma, Ex-Member of Parliament, Andaman and Nicobar Islands & Ex-Chairman of Andaman and Nicobar State Cooperative Bank (ANSCBL); K. Murugan, Managing Director (ANSCBL); and K. Kalaivanan, Loan Officer (ANSCBL), under the provisions of the PMLA, 2002, in connection with a bank fraud case on September 17, 2025.
The Hon’ble Special Court under PMLA has remanded Kuldeep Rai Sharma and K. Kalaivanan to ED custody for a period of 8 days. These are the first-ever arrests made by ED in the Union Territory of Andaman & Nicobar Islands.
ED initiated investigation on the basis of an FIR registered by the Crime & Economic Offences Cell, Andaman & Nicobar Police, against various private persons and officials of the bank. The case pertains to fraud committed by officials of ANSCBL, including Kuldeep Rai Sharma and others responsible for sanctioning bank loans. In connivance with their accomplices, they floated several shell companies and sanctioned large loans to them as well as to their regular entities in flagrant violation of the laid-down procedure of the bank with the sole intent of not repaying the funds, thereby causing losses to the bank and generating corresponding gains for themselves.
Investigation conducted so far indicates that loan facilities were sanctioned through more than 100 loan accounts in the names of various firms and shell companies, in complete disregard of the guidelines of the bank, and the amount involved in the fraud/NPA exceeds ₹500 crore. Evidence collected also indicates that loan amounts of about ₹230 crore were fraudulently taken exclusively for the benefit of Kuldeep Rai Sharma and his associates, including the Managing Director and Loan Officer.
ED investigation has further revealed that K. Murugan, MD, and K. Kalaivanan, Loan Officer, also fraudulently availed loans from the bank in the names of companies incorporated in the name of relatives. They helped their associates to obtain multiple loans in lieu of 5% commission which were made on the instructions of Kuldeep Rai Sharma. The commission amount was taken either in cash or through associates by using the accounts of shell companies.
Further, searches are being conducted at three premises in the Andaman & Nicobar Islands in continuation of earlier searches in relation to diversion of bank funds. Earlier searches were conducted at 21 premises on July 31 and August 1, 2025, including those of shell companies created by Kuldeep Rai Sharma in connivance with his associates. The investigation has revealed that loan amounts were diverted and siphoned off through multiple shell entities and a substantial portion of these loans were withdrawn in cash and paid as share to senior bank officials, including Kuldeep Rai Sharma. Further investigation by ED is under progress. (Story Based on Official PR by ED)
