Scam alleged in Andaman & Nicobar Co-op Bank; social media erupts

A social media campaign under the hashtag #SaveAndamanCooperativeBank has triggered a political storm in the Andaman & Nicobar Islands, with allegations of large-scale corruption and mismanagement in the Andaman & Nicobar State Cooperative Bank (ANSCB).

The campaign, which gained traction on platform ‘X’ (formerly Twitter), accuses the bank’s leadership of siphoning off nearly Rs 950 crore, citing fake gold loans, forged appraisals, and mounting non-performing assets (NPAs), which, according to users, have reached as high as 58%.

Social media users have demanded a thorough probe, claiming the institution has become a “scam factory” under the leadership of Kuldeep Rai Sharma, a Congress leader and top functionary in the bank.

One of the posts reads, “Over Rs 950 crore scam, fake gold loans, and the highest NPA of 58%—the Andaman Cooperative Bank under Kuldeep Rai Sharma has become a symbol of corruption. Why no action yet?”

Another accuses the bank of failing the islanders, “Poor islanders trusted the cooperative bank. Their hard-earned money was funneled to corrupt elites. This is not governance, it’s exploitation.”

Reacting to the controversy, K. Murugan, Managing Director of ANSCB, dismissed the campaign as politically motivated, saying it was being run by certain groups with vested interests.

“Our bank is functioning properly and there is no fraud. It’s true that our NPA level is high, but that does not imply any wrongdoing,” said Murugan, defending the bank’s operations.

“Our total business is around Rs 1,500 crore and as per unaudited figures, our net profit stands at approximately Rs 7 crore,” he added.

Murugan also pointed out that the timing and nature of the campaign suggest political intent, especially since a senior Congress leader is associated with the bank’s management.

While the allegations continue to circulate on social media, no official inquiry has yet been announced by the authorities. The situation has sparked a debate about transparency, governance, and the need to insulate cooperative institutions from political interference.