The Directorate of Enforcement (ED) has carried out its first-ever search operation in the Andaman and Nicobar Islands in connection with an alleged fraud involving the Andaman and Nicobar State Cooperative Bank (ANSCB). The operation was conducted at nine locations in and around Sri Vijaya Puram, as well as at two locations in Kolkata, on July 31, 2025.
Following the initial raids, the ED is now conducting searches at ten additional locations in the Islands linked to shell companies and individuals identified during the earlier operations. The investigation was launched based on an FIR filed by the Crime and Economic Offences Wing of the Andaman and Nicobar Police against several private individuals and officials associated with the bank.
During the searches in the Islands, officials recovered various incriminating documents suggesting extensive irregularities in the sanctioning of loans and overdraft facilities by the ANSC Bank. The ED stated that more than 100 loan accounts were used to extend credit to different firms and shell companies, bypassing the bank’s standard procedures and guidelines.
The search also led to the identification and recovery of property documents valued at around ₹100 crore. According to the ED, several shell companies were allegedly floated by Shri Kuldeep Rai Sharma, former Member of Parliament of the Andaman and Nicobar Islands, in collusion with his associates. These entities reportedly availed loan facilities exceeding ₹500 crore from the ANSC Bank in a fraudulent manner.
Investigators said the funds were siphoned off through various shell entities. A considerable amount of the loaned money was withdrawn in cash and allegedly paid as kickbacks to senior bank officials, including Kuldeep Rai Sharma. The ED also noted that Sharma had recently held the position of Chairman of the Andaman and Nicobar State Cooperative Bank.
The agency has confirmed that further investigation is underway, and additional actions will be taken based on the evidence gathered from ongoing search operations.
