In a significant development in the ongoing Andaman and Nicobar State Cooperative Bank (ANSCB) loan fraud investigation, the Circuit Bench of the Calcutta High Court at Sri Vijaya Puram has granted bail to former ANSCB Managing Director K. Murugan on medical grounds, while proceedings concerning Kuldeep Rai Sharma remain under review in connection with the Enforcement Directorate (ED) probe.
The court allowed Murugan’s bail plea after detailed submissions regarding his deteriorating health condition. During the hearing, it was informed that Murugan underwent surgical removal of one kidney while in custody and had also required multiple finger amputations. Records placed before the court further indicated that his remaining kidney is reportedly damaged, raising serious medical concerns. The Enforcement Directorate did not oppose the bail application on medical grounds, which the court considered while granting relief, subject to conditions.
Murugan continues to be an accused in the ED’s investigation into alleged financial irregularities and large-scale loan fraud at ANSCB. The case centres on allegations that loans were sanctioned to shell companies and that funds were diverted for purposes not aligned with banking norms. His legal team argued that continued detention could severely worsen his medical condition and stressed the need for advanced treatment outside custody.
The court imposed conditions while granting bail, including periodic reporting to authorities and compliance with judicial directions to ensure his availability for the investigation and trial. Legal observers note that bail on medical grounds aligns with established legal principles balancing custodial requirements with the right to life and health.
Meanwhile, proceedings concerning Kuldeep Rai Sharma remain under review. During the hearing, it was brought to the court’s attention that Sharma had allegedly issued instructions that led to tampering of certain materials during the ED investigation. The petitioner’s counsel referred to a specific entry in the panchnama – reportedly on page 114 – signed by independent witnesses, which indicated that the alleged tampering occurred under Sharma’s direction.
Senior counsel for the petitioner argued that the accused did not possess independent authority to sanction loans or conduct bank transactions, stating that all loan approvals were made by the managing committee and that the petitioner’s role was limited to submitting written comments for appraisal. Sharma’s alleged involvement in giving instructions related to handling of evidence remained a focal point during arguments.
The court reviewed multiple submissions, including medical records placed on behalf of the petitioner, before passing orders. While Murugan was granted bail, Sharma’s case continues to be evaluated under the Prevention of Money Laundering Act (PMLA).
The ANSCB loan fraud case has attracted widespread attention due to the profile of those named and the scale of the alleged financial misconduct. With investigations ongoing, authorities are continuing procedural steps including evidence examination, scrutiny of documentation, and questioning of individuals linked to the case.
Further hearings are scheduled as the court monitors compliance and considers additional submissions, underscoring the judiciary’s role in ensuring due process while addressing both investigative and humanitarian considerations.
