Sri Vijaya Puram, June 29 — The Crime Investigation Department (CID) of the Andaman and Nicobar Police has made the first arrests in the ₹147 crore loan fraud case involving the Andaman and Nicobar State Cooperative Bank (ANSCB), signaling a critical step forward in the months-long investigation. More arrests are likely in the coming week as investigators examine fresh leads and interrogate those already in custody.
Sources directly familiar with the probe confirmed to The Wave Andaman, requesting anonymity, that five individuals were taken into custody between Wednesday and Friday. Among those arrested is K. Murugan, the Managing Director of ANSCB, along with another senior bank employee and three staffers of a company that had availed substantial loans from the cooperative bank. Those named in the FIR include former Member of Parliament from the Islands, Kuldeep Rai Sharma.
The arrests follow a First Information Report (FIR) registered on May 15 that named over 200 individuals, including bank personnel, local businessmen, and alleged beneficiaries of irregular loans. The criminal investigation is being led by the Special Investigation Unit under IPS officer Jitendra Meena.
According to sources, investigators are currently pursuing multiple leads based on digital communications, internal correspondence, and flagged transactions, and have compiled a list of additional suspects. These individuals are likely to be summoned or detained in the coming week as part of the next phase of the operation.
As previously reported, forensic and financial scrutiny has revealed large-scale anomalies in ANSCB’s loan disbursement practices, with several borrowers reportedly receiving loans without adequate collateral or proper due diligence. Investigators have been reviewing both physical account ledgers and digital records as part of the probe.
The development comes just days ahead of the ANSCB Board’s meeting scheduled for June 30. The board, which includes several newly elected members, had earlier asked the Managing Director to submit a detailed report on the alleged irregularities and the bank’s internal control mechanisms.
In addition to the CID, teams from the Registrar of Cooperative Societies, the Aberdeen Police, and the Central Crime Station in Sri Vijaya Puram have been coordinating search operations across multiple locations since May. These teams have inspected account books, administrative files, and digital documentation linked to sanctioned loans.
The ANSCB, a key financial institution in the islands’ rural economy, plays a central role in lending to farmers, self-help groups, and small enterprises. The ongoing revelations of mismanagement have raised serious concerns about regulatory oversight and institutional accountability.
Authorities have not yet issued a formal statement on the arrests. However, senior officials indicate that more detentions are imminent, with at least half a dozen individuals currently under the scanner for their role in the loan sanction process.
