The Enforcement Directorate (ED) has summoned multiple individuals for interrogation in connection with the alleged ₹500-crore Andaman & Nicobar State Cooperative Bank scam, marking a sharp escalation in one of the islands’ largest financial fraud investigations. Officials confirmed the move on Thursday, August 21, as per first reported by the source Nicobar Times.
The individuals, linked to shipping, hospitality, construction, and trading, have been directed to appear before the ED’s Kolkata office. Investigators have also called for their loan documents to be examined. Sources indicate that several discrepancies have already been detected in their statements, raising suspicions over how loans were sanctioned and subsequently used.
The agency has alleged that fraudulent entities siphoned off or misutilized over ₹500 crore from the bank. During searches, officials said they recovered documents worth more than ₹100 crore, now being scrutinized as part of the expanding probe.
The summons follows a wave of raids carried out earlier this month. On July 31, the ED launched its first-ever search operations in the Andaman & Nicobar Islands, covering nine locations in Sri Vijaya Puram and two in Kolkata. The crackdown continued on August 1, targeting 10 more premises across Sri Vijaya Puram. These operations were described as a turning point in the investigation. Earlier coverage here.
The case itself traces back to May, when the Crime and Economic Offences Police Station of the Andaman & Nicobar Police filed an FIR. The police investigation led to multiple arrests, including that of former Member of Parliament Kuldeep Rai Sharma, who also served as Vice Chairman of the cooperative bank during the period under scrutiny. His role has figured prominently in the case, highlighting the high-profile nature of the scandal.
The scandal has already shaken public confidence in cooperative banking in the islands. The ED’s probe, carried out under the Prevention of Money Laundering Act, has added a central dimension to the investigation. Officials describe it as one of the most serious financial crime cases in the Andaman & Nicobar Islands, both for the sheer scale of alleged fraud and for the influence of those linked to it.
Investigators are now focused on tracing how funds were diverted and whether the proceeds were funneled into assets such as real estate and luxury goods. With ten key industry figures summoned, the ED hopes to establish the network of beneficiaries who may have profited from the irregular loans.
The crackdown builds on earlier arrests made by the CID and local police, who uncovered a pattern of loan approvals issued without due diligence or proper collateral. Many of these loans have since turned into non-performing assets, raising questions about regulatory oversight.
Officials suggest the ED’s findings could trigger broader reforms in cooperative banking across the islands. With mounting evidence and a widening probe, the case is expected to have long-term implications for both financial and political circles in the Andaman & Nicobar Islands.
