Sri Vijaya Puram : The Enforcement Directorate (ED) has opened an independent inquiry into suspected benami landholdings across the Andaman and Nicobar Islands, according to sources familiar with the matter. Investigators are examining a series of land transactions that sources allege may involve proxy ownerships, associated entities, and record irregularities potentially attracting provisions of the Benami Transactions (Prohibition) Act, 1988.
Sources said this line of inquiry is separate from the ED’s ongoing probe concerning the Andaman and Nicobar State Cooperative Bank (ANSCB), which is being examined for alleged loan irregularities and fund diversion. Possible overlaps between the two cases, including common individuals and transaction trails, are being assessed, they added.
According to people briefed on the matter, investigators are testing whether some persons scrutinised in the ANSCB probe also acquired land during the relevant period and whether any of the funds could be linked to those purchases. The ED is understood to be evaluating attachment or confiscation action under the benami law where warranted, subject to internal approvals and due process, sources said.
The present inquiry, sources added, is based on specific complaints alleging irregularities in land documentation and acquisition beyond known sources of income by certain influential individuals residing in the islands and on the mainland. The ED is expected to seek records from the Department of Revenue, the Land Records Division, and other administrative branches, including ownership histories, mutation entries, and transfer patterns, to identify the ultimate beneficiaries of these properties.
Some of the questioned transactions date back several years and may involve inter-state linkages, including funds routed through mainland intermediaries, according to sources. The number of properties under review has not been disclosed. The Wave Andaman has not independently verified the complaints or the underlying documentation. The ED and the Andaman and Nicobar Administration did not respond to requests for comment by press time.
Under the Benami Transactions (Prohibition) Act, properties judged to be benami can be confiscated by the central government, and offenders may face imprisonment of up to seven years and fines up to 25 percent of the property’s fair-market value. Allegations mentioned in this report remain under investigation and are yet to be adjudicated by any court.
Over the past few years, real estate in the Andaman and Nicobar Islands has emerged as a significant draw for speculators, investors, and outside buyers attracted by the region’s limited land supply and improving connectivity. Market participants say the opening of new roads, expansion of port facilities, and tourism-linked infrastructure have led to a sharp increase in land inquiries and prices, particularly around Sri Vijaya Puram andFerrargunj.
Impact on land conversions
As The Wave Andaman reported on August 27, land conversion and diversion in the Andaman and Nicobar Islands have resumed after a five-year pause, following representations by Member of Parliament Bishnu Pada Ray and subsequent directions from the Ministry of Home Affairs to expedite pending applications.
Official correspondence reviewed by The Wave Andaman indicates that the administration has since processed a tranche of legacy cases and issued multiple hearing notices, while granting No Objection Certificates (NOCs) for public projects such as the Pradhan Mantri Awas Yojana (PMAY) and the Pradhan Mantri Matsya Sampada Yojana (PMMSY).
The earlier freeze on land conversions, in effect since 2018–2019, had created uncertainty among applicants and delayed several development initiatives. It also raised concerns that large tracts were being held for speculative rather than developmental purposes.
With the ED’s scrutiny of questionable landholdings and the administration’s revival of pending conversions, land governance in the islands has again come under focus, at the intersection of development, transparency, and environmental sensitivity.
