The bail hearing of former Member of Parliament Kuldeep Rai Sharma and former ANSCB Managing Director K. Murugan was adjourned to Tuesday the 25th November after Kuldeep filed a fresh bail application before the special ED court on Thursday. The development marks the latest shift in the Enforcement Directorate’s expanding money-laundering investigation linked to the Andaman & Nicobar State Cooperative Bank.
Court records show that the ED has named 38 individuals and companies in its complaint, indicating a broadened inquiry into suspected diversion of bank funds, irregular loan approvals and the use of suspected shell entities. Murugan, regarded as a key figure due to his leadership during the period under examination, had not been produced in an earlier hearing after the Jail Department informed the court that he had been admitted to the male surgical ward of GB Pant Hospital. His counsel attended via video conferencing from the mainland, following which the petition for bail was filed. The ED maintains that his custodial interrogation is required under Section 187(2) of the Bharatiya Nagarik Suraksha Sanhita read with Section 65 of the Prevention of Money Laundering Act to trace fund movements and clarify his alleged involvement in transactions routed through multiple entities.
The chargesheet includes the names of several individuals, among them Kuldeep Rai Sharma, K. Kalaivanan, Sanjay Lal, Sanjeev Lal, Raghubir Singh, T. Vinod, Vinita Sharma and J. Sasi Kumar. Officials with knowledge of the probe said the case relies heavily on statements recorded under PMLA procedures, digital data, forensic audits and bank documentation linked to loan disbursals and restructuring processes. Along with individuals, 29 companies have been listed, with investigators alleging that several show patterns consistent with layering, circular transactions and transfers without meaningful business activity. The entities include M/s S.L Projects Pvt Ltd, M/s De-Forest Hotels and Resorts Pvt Ltd, M/s Hotel Blue Waves Pvt Ltd, Blair Enterprises Pvt Ltd, Apache Traders Pvt Ltd, Blue Kite Infrastructure Pvt Ltd, Andaman Delight Infrastructure Pvt Ltd, Sakthi Holidays Inn Pvt Ltd and others.
Forensic audits commissioned during the inquiry have highlighted overlapping ownership structures, unexplained cash flows and loan amounts allegedly diverted into personal ventures, secondary businesses or related-party entities. Investigators are examining additional financial and digital documents to map internal approval chains and determine whether staff were instructed to expedite certain files without the usual checks. Statements from former bank staff, loan applicants and middle-level management have been recorded. The ED is said to be focusing on whether multiple unsecured loans were sanctioned within short intervals and whether these were part of a broader system of influence within the bank.
The court’s decision on Tuesday is expected to shape the next phase of the investigation. All accused individuals remain in judicial custody until the next hearing.
