In a major crackdown, the Directorate of Enforcement (ED) conducted its first-ever search operation in the Andaman & Nicobar Islands on 31st July 2025 in connection with a large-scale fraud involving the Andaman Nicobar State Cooperative Bank (ANSCB).
The operation covered 9 locations in and around Port Blair and 2 in Kolkata, with follow-up searches underway at 10 more locations across the islands.
The investigation was initiated based on an FIR filed by the Crime & Economic Offences Wing of the Andaman & Nicobar Police, naming several private individuals and bank officials.
During the searches, ED recovered incriminating documents exposing serious irregularities in the disbursal of loans and overdraft facilities through over 100 shell companies and firms, bypassing the bank’s standard procedures and norms.
Property documents worth around Rs 100 crore were seized, and evidence revealed that fraudulent loans exceeding Rs 500 crore were granted to shell companies allegedly floated by Kuldeep Rai Sharma, former MP and ex-Vice Chairman of ANSCB. The funds were reportedly siphoned off and diverted, with large cash withdrawals used as kickbacks to senior bank officials, including Sharma himself.
The ED confirmed that further investigation is ongoing to trace the full extent of the fraud and recover the diverted assets.
