The special ED court is set today to hear the bail plea of K. Murugan, former Managing Director of the Andaman & Nicobar State Cooperative Bank (ANSCB), even as the Enforcement Directorate broadens its investigation into alleged money laundering linked to the institution. Court records accessed by The Wave Andaman show that the agency has named 38 individuals and companies in its complaint, signalling a widening inquiry into suspected diversion of bank funds, irregular loan approvals and the alleged use of shell entities to disguise financial transactions.
Murugan, considered a central figure due to his leadership role during the period under scrutiny, could not be produced before the court during the previous hearing. The Jail Department had informed the court that he was admitted to the male surgical ward of GB Pant Hospital. His counsel, currently on the mainland, was permitted to join the proceedings via video conferencing, after which a formal petition seeking bail was filed. The ED, however, has sought his custody under Section 187(2) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), read with Section 65 of the Prevention of Money Laundering Act (PMLA), arguing that additional interrogation is required to trace fund movements and clarify his alleged role in the network of associated companies.
The chargesheet lists several individuals, including former Member of Parliament Kuldeep Rai Sharma, K. Kalaivanan, Sanjay Lal, Sanjeev Lal, Raghubir Singh, T. Vinod, Vinita Sharma and J. Sasi Kumar. Many among them have already been questioned in connection with loan disbursal decisions, restructuring processes and financial transactions routed through the bank during the years under examination. Officials familiar with the investigation noted that the ED’s case draws heavily on bank records, forensic audit findings, digital data and statements recorded under PMLA procedures.
Alongside individuals, a total of 29 companies figure prominently in the complaint. The ED has alleged that several of these entities were used to layer transactions, obscure beneficial ownership or route funds without adequate business activity. The list includes M/s S.L Projects Pvt Ltd, M/s De-Forest Hotels and Resorts Pvt Ltd, M/s Hotel Blue Waves Pvt Ltd, M/s Blair Enterprises Pvt Ltd, M/s Apache Traders Pvt Ltd, M/s Foxy Infrastructure Pvt Ltd, M/s Caftopia Traders Pvt Ltd, M/s Atikaya Logistics Pvt Ltd, M/s Asha Arya Traders and Travels Pvt Ltd, Amman Aryan General Store Pvt Ltd, M/s AKV Traders and Tours Pvt Ltd, M/s Vetigo Infrastructure Pvt Ltd, M/s Nord Trading Pvt Ltd, M/s Andaman Island Trading Pvt Ltd, M/s Blue Kite Infrastructure Pvt Ltd, M/s Heyday Hospitality Pvt Ltd, M/s Andaman Mormon Infrastructure Pvt Ltd, M/s Bountry Basket Trading and Infrastructure Pvt Ltd, M/s Dugong Adventure Pvt Ltd, M/s Andaman Delight Infrastructure Pvt Ltd, M/s Protrade Enterprises Pvt Ltd, M/s Andaman Treepie Adventure Pvt Ltd, M/s Gen N Go Store Pvt Ltd, M/s Vasuki Import Export Sport Activity Pvt Ltd, M/s S.L Enterprises Pvt Ltd, M/s Sakthi Shipping Logistics Pvt Ltd, M/s Sakthi Hardwares Pvt Ltd, M/s Sakthi Infrastructure Pvt Ltd, M/s Sakthi & Co. and M/s Sakthi Holidays Inn Pvt Ltd.
The cooperative bank has been under sustained scrutiny following allegations that large loan amounts were disbursed without adequate collateral safeguards and were subsequently siphoned off. Forensic audits commissioned during the probe have pointed to circular transactions, overlapping ownership structures and unexplained cash flows that raised further questions about the patterns of fund utilisation. These findings have prompted the ED to expand the scope of its inquiry and examine additional financial and digital evidence, with more filings expected in the coming weeks.
All other accused individuals remain in judicial custody as the court prepares to take up Murugan’s bail plea today. The outcome is likely to shape the next phase of the investigation, with the ED indicating that it will continue to pursue leads related to fund diversion and associated entities as the case progresses.
