Daijiworld Media Network – Port Blair

Port Blair, Jul 31: In a historic first, the Enforcement Directorate (ED) on Wednesday conducted search operations in the Andaman and Nicobar Islands, targeting an alleged Rs 200 cr loan fraud linked to the Andaman Nicobar State Cooperative Bank (ANSCB).

The agency carried out simultaneous raids at nine locations in and around Port Blair, along with two premises in Kolkata, as part of a money laundering investigation into serious irregularities in the disbursal of loans by the cooperative bank.

According to the ED, documents seized during the operation reveal that ANSCB extended loans and overdraft facilities to multiple shell companies in violation of standard banking procedures. Around 15 such entities were reportedly floated to channel funds unlawfully, allegedly for the benefit of Kuldeep Rai Sharma, former Member of Parliament from the islands.

Significantly, the ED claims over Rs 200 crore was fraudulently availed through these entities, with large cash withdrawals that were allegedly routed to Sharma. The former MP also holds the post of Vice-Chairman of ANSCB, raising questions of conflict of interest and abuse of office.

The investigation began after an FIR was filed by the Crime and Economic Offences Wing of the Andaman and Nicobar Police, naming private individuals and bank officials.

This marks the ED’s first-ever operation in the island territory, highlighting its increased focus on financial crimes even in India's remotest regions. Further developments are awaited as the probe progresses.