Sri Vijaya Puram, Sept. 10: The Enforcement Directorate (ED) has filed a written objection to the bail application of accused Sanjay Lal in CR Case No. 01/2025, while a Special Judge has ordered that former Andaman and Nicobar Islands MP Kuldeep Rai Sharma, Kalaivanan and Sanjay Lal remain in judicial custody until the next date of proceedings.
According to a court order dated September 8, Sanjay Lal and Kuldeep Rai Sharma were not produced before the court as they were undergoing medical treatment. The Jailor of District Jail, Prothrapur, submitted a petition along with a report from the Chief Medical Officer-in-Charge of the District Jail Hospital.
The case relates to an ED investigation into an alleged large-scale loan fraud at the Andaman and Nicobar State Cooperative Bank (ANSCB). The ED initiated its money-laundering investigation on the basis of an FIR registered by the Crime & Economic Offences Cell of the Andaman and Nicobar Police against various private individuals and bank officials. The agency has alleged that loans were sanctioned through more than 100 accounts belonging to firms and alleged shell companies in violation of banking procedures, with the alleged fraud and non-performing assets exceeding ₹500 crore. The ED has further alleged that approximately ₹230 crore in loans was fraudulently obtained for the benefit of Kuldeep Rai Sharma and his associates. These are allegations made by the investigating agency and remain subject to adjudication.
The ED had arrested Sharma, then ANSCB Managing Director K. Murugan and loan officer K. Kalaivanan under the Prevention of Money Laundering Act (PMLA) in September 2025. The agency subsequently arrested Sanjay Lal, described by the ED as an associate of Sharma. The ED later filed a prosecution complaint against 39 persons in the case. The allegations have not been finally adjudicated by the court.
ED Opposes Sanjay Lal’s Bail
The September 8 proceedings were scheduled to take up the ED’s reply to Sanjay Lal’s bail application, arguments on the point of pre-cognizance, and a petition filed by Reginald Charles Rufus seeking permission to deposit an amount into Sanjay Lal’s account.
The ED filed its written objection to Lal’s bail petition and a copy was served on his counsel.
During the proceedings, the Additional Public Prosecutor appearing for the ED sought two days’ accommodation, stating that the senior prosecutor who intended to argue the matter was on the mainland. The court’s video-conferencing system was also not working, according to the order.
Counsel representing Sanjay Lal objected to the request and submitted that Lal was facing health issues and had been taken to hospital for medical attention. After hearing both sides, the court adjourned the matter.
Court Informed of K. Murugan’s Death
In another significant development, advocate D. Ilango filed a petition informing the court that accused K. Murugan had died on September 5.
The court directed the enquiry officer in the case to submit Murugan’s death report on the date fixed for the purpose.
The Special Judge also ordered that Kuldeep Rai Sharma, Kalaivanan and Sanjay Lal be remanded to judicial custody until the next date.
The court fixed September 10 for hearing the ED’s reply in connection with Sanjay Lal’s bail petition.
October 29 has separately been fixed for submission of K. Murugan’s death report, hearing on the point of pre-cognizance and consideration of the petition dated August 10 filed by Reginald Charles Rufus and two others.
Several other accused appeared before the court on September 8 and filed their attendance, while a number of accused were recorded as absent. Kalaivanan was produced from judicial custody.
The proceedings remain pending before the Special Court. The allegations made by the ED have not been finally adjudicated, and references to individuals as accused reflect their status in the pending proceedings.
