Sri Vijaya Puram | February 14, 2026
The Directorate of Enforcement (ED), Kolkata Zonal Office, has issued a Provisional Attachment Order dated February 10, 2026 under the Prevention of Money Laundering Act (PMLA), attaching 51 immovable properties valued at approximately Rs. 200.02 crore in connection with the Andaman & Nicobar State Co-operative Bank (ANSCBL) case.
According to the ED, the attached properties include hotels, resorts and parcels of land situated in the Andaman & Nicobar Islands. The agency stated that these properties are “directly or indirectly derived out of, or involved in, the Proceeds of Crime” allegedly generated from the ANSCBL case. With the present attachment of about Rs. 200 crore, the ED said it has secured a significant part of the Proceeds of Crime identified so far.
The money-laundering investigation was initiated on the basis of an FIR registered by the Crime & Economic Offences Police Station, Andaman & Nicobar Police under various sections of the IPC, 1860 against Kuldeep Rai Sharma and others.
The ED alleged that its investigation has revealed that Kuldeep Rai Sharma, former MP and then Vice-Chairman of ANSCBL, in collusion with accomplices, floated and operated 23 shell companies and several other entities for the purpose of fraudulently availing loans from the bank. Loans and overdrafts to the tune of about Rs. 301.50 crore were sanctioned in the names of 21 shell companies alone, out of which loans of 18 shell companies amounting to Rs. 271 crore later turned into Non-Performing Assets (NPAs), the agency said.
In total, more than 100 high-value loans (loan amount above Rs. 1 crore) were allegedly deliberately sanctioned to these entities in gross violation of NABARD guidelines, RBI directions and internal circulars of ANSCBL, according to the ED. The NPA amount involved in such high-value accounts alone is stated to be more than Rs. 420 crore, forming a substantial part of the overall NPA of the bank as on date. The ED further stated that more than Rs. 500 crore has turned into NPA, of which approximately Rs. 271 crore is attributable to shell companies.
During the investigation, the ED identified 51 immovable properties—mainly lands, hotels and resorts—standing in the names of the accused persons, their family members, close associates and companies or firms allegedly controlled by them.
The agency further alleged that properties were acquired from various landowners and farmers in the names of dummy directors or shell companies through powers of attorney (POA) in order to conceal the actual consideration amount. The ED stated that it traced 25 land parcels worth approximately Rs. 123 crore that were obtained through POA and subsequently mortgaged by allegedly exaggerating the value of such properties to secure high-value bank loans in connivance with bank officials.
According to the ED, these high-value loans were allegedly sanctioned without proper valuation, without evidence of proper business activities and without due diligence. The agency alleged that the funds were diverted and siphoned off using various shell entities and cash withdrawals, and were used to purchase immovable properties in the names of associates. It further claimed that no genuine business activities were carried out that could generate income for repaying the bank loans, resulting in the accounts turning into NPAs.
The ED also alleged that the loans were sanctioned through the influence of Kuldeep Rai Sharma, utilising the services of bank officials K. Murugan and K. Kalaivanan, who have been arrested in the case. The agency claimed that these employees also received their share of the alleged Proceeds of Crime generated through the bank fraud.
The ED described Kuldeep Rai Sharma as the main accused and mastermind in the case and alleged that he utilised the assistance of businessmen Sanjay Lal and Sanjeev Lal, who allegedly provided dummy directors and routed entries through shell companies in lieu of a share of the defrauded loan amounts. Separate shell companies were allegedly floated by them, into which substantial loans were sanctioned. The agency further alleged that large sums of cash were siphoned off from the loan amounts and paid to Kuldeep Rai Sharma.
Earlier, the ED had arrested Kuldeep Rai Sharma (Vice Chairman and Ex-MP), Sanjay Lal (Hotelier), K. Murugan (MD) and K. Kalaivanan (Loan Officer). A Prosecution Complaint was filed on November 14, 2025 before the Hon’ble Special Court (PMLA), Port Blair against 39 accused persons/entities.
The bail applications of the accused persons were dismissed by the Ld. Special Court by an order dated December 12, 2025. On February 10, 2026, the Hon’ble High Court of Calcutta (Circuit Bench at Port Blair) also dismissed the bail applications of Kuldeep Rai Sharma and Sanjay Lal.
Further investigation is under progress. The allegations are part of the ED’s ongoing probe and the matter is presently under judicial consideration.
