On July 31, the Enforcement Directorate (ED) has, for the first time, conducted a search operation in the Andaman and Nicobar Islands. he operation was linked to a suspected financial fraud at Andaman & Nicobar State Cooperative (ANSC) Bank. Raids were carried out at 9 locations in Port Blair and 2 in Kolkata, under the Prevention of Money Laundering Act (PMLA). The ED is examining irregularities in loan disbursement and potential diversion of funds by individuals linked to the bank.
Key Points:
- The total amount involved in the fraud is over ₹200 crore, a significant loss to the bank and ultimately to public funds.
- The loans were allegedly fraudulently taken from ANSC Bank.
- These loans were given to shell companies , fake or non-operational firms created just for siphoning money.
- According to the Enforcement Directorate (ED), the investigation has uncovered that Kuldeep Rai Sharma, a former Congress MP (2019–2024) and Vice-Chairman of ANSC Bank, along with 15 associated entities, was involved in a large-scale loan fraud.
- These entities were allegedly created for the benefit of Kuldeep Rai Sharma.
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The ED believes the fraud was done to benefit Kuldeep Rai Sharma. A lot of money was taken out in cash and reportedly given to him. This has raised serious concerns about both political and financial corruption.
- The ED is now investigating the money laundering angle, trying to trace how the funds were used or diverted after being illegally obtained.
The ED is investigating the case under the PMLA, which deals with money laundering and proceeds of crime. If proven, this could result in serious legal consequences, including asset seizures, arrests, and prosecution of those involved. This incident is considered a major crackdown on financial crimes in the Union Territory, where such ED action is rare.