Sri Vijaya Puram : K. Subramanian, former Vice Chairman of the Andaman and Nicobar State Cooperative Bank (ANSCB), has been arrested by the Andaman and Nicobar Police in connection with the ₹147-crore loan fraud case, police sources told The Wave Andaman.
Subramanian, who was associated with the bank for several years, is alleged to have been a signatory on multiple loan transactions that are now under investigation. He is currently in judicial custody. Subramanian also served as a member of the Territorial Congress Committee of the Andaman and Nicobar Islands.
His arrest last week follows the first set of detentions in the case in June, when the Crime Investigation Department (CID) of the Andaman and Nicobar Police arrested five individuals. Among them were K. Murugan, Managing Director of ANSCB, another senior bank official, and three employees of a private firm that had received substantial loans from the bank.
Murugan has also been sent to judicial custody. Officials familiar with the case confirmed that he is critically ill and undergoing regular kidney dialysis. Sources say that medical updates have been submitted to the court as part of custody proceedings.
The case originates from a First Information Report registered on May 15, which named more than 200 individuals, including current and former bank personnel, businessmen, and loan beneficiaries.
Forensic audits and financial reviews have revealed significant irregularities in ANSCB’s lending practices, including the disbursal of high-value loans without proper documentation, collateral, or due diligence. Several of the loans are now classified as non-performing assets (NPAs). Investigators have been reviewing both physical ledgers and digital records to track the flow of funds and identify systemic failures.
Search and seizure operations have been ongoing since May, with teams from the CID, Registrar of Cooperative Societies, Aberdeen Police, and the Central Crime Station in Sri Vijaya Puram examining files and records across multiple locations. The bank board had earlier directed senior management to present a report on internal control lapses and compliance failures. The ANSCB plays a key role in rural lending and cooperative credit in the islands. It provides loans to farmers, self-help groups, and small businesses. The scale of alleged mismanagement has raised concerns among depositors, regulators, and members of the cooperative community. Authorities have not issued an official statement on the arrests. The investigation is ongoing.
