The Enforcement Directorate has filed a chargesheet naming 37 individuals in the alleged financial irregularities linked to the Andaman & Nicobar State Cooperative Bank, marking a major step forward in the agency’s ongoing investigation into suspected loan-related misconduct and procedural violations inside the institution.
According to officials aware of the development, the chargesheet details alleged lapses in loan sanctioning processes, diversion of funds, and decision-making practices that investigators believe may have conferred undue financial benefit on a select group.
Those named include former MP Kuldeep Rai Sharma, former bank chairperson K. Murugan, and businessman Sanjay Lall. Each has allegedly featured in different parts of the agency’s examination into how funds were approved, moved, or utilised, though specific charges against each individual will become clear once the court authorises public access to the document.
The case began with allegations that multiple loans sanctioned by the cooperative bank over several years were extended without adequate collateral, proper verification, or adherence to internal procedures. Investigators have examined whether some loans were allegedly granted to entities with minimal repayment capacity or were renewed repeatedly despite defaults. Several loan accounts flagged by auditors were reportedly classified as non-performing, prompting the initial complaints that led to the ED’s intervention.
The agency is understood to have tracked financial flows from these loan accounts into secondary businesses and personal ventures allegedly linked to some of the accused. Part of the probe has also focused on whether loan proceeds were diverted through layered transactions, including shell entities and related-party firms. Statements of former bank officials, loan applicants, and middle-level management have reportedly been recorded to establish how the approval chain functioned and whether any pressure or influence was involved.
Investigators have relied on forensic audits, internal communications, board meeting records, and seized digital devices to reconstruct the pattern of lending. Sources indicated that the ED has examined whether certain borrowers allegedly received multiple unsecured loans within short intervals and whether staff members were instructed to expedite files without the usual scrutiny.
Given that the cooperative bank serves thousands of island residents, the development has triggered wide public interest. Citizens are closely watching to understand the scale of alleged wrongdoing and the roles of those named so far.
The ED’s action signals that the matter has now entered a concrete prosecutorial phase, though the agency has not yet disclosed the full scope of the alleged conspiracy or the complete roster of accused individuals.
The Wave Andaman will publish the full list of the 37 names once formally available through court records.
