Kolkata/Port Blair: In a landmark operation, the Directorate of Enforcement (ED), Kolkata Zonal Office, arrested three individuals on 17.09.2025 under the Prevention of Money Laundering Act (PMLA), 2002 in connection with a massive ₹500 crore bank fraud involving the Andaman & Nicobar State Cooperative Bank (ANSCBL).
Those arrested include Kuldeep Rai Sharma, Ex-MP & Ex-Chairman of ANSCBL, K. Murugan, Managing Director, and K. Kalaivanan, Loan Officer. They have been remanded to 8 days ED custody by the Special Court (PMLA). Notably, these are the first-ever ED arrests in the Union Territory.
The investigation, initiated on the basis of a Crime & Economic Offences Cell, A\&N Police FIR, revealed that bank officials colluded with shell companies, sanctioned fraudulent loans, and siphoned off funds for personal gains. Evidence shows over 100 loan accounts were manipulated, causing huge losses to the bank. Of this, around ₹230 crore was misappropriated exclusively for Sharma and his associates.
Earlier, searches were conducted at 21 locations (July–August 2025), exposing shell firms and diversion of funds. Fresh searches are underway at three more premises.
The ED’s proactive action highlights the government’s zero-tolerance stance on corruption and financial crimes, ensuring accountability even in India’s remotest territories.
Our Citizen Reporter – Andaman and Nicobar Island
Mr. Satyajit Nasksr
