In a deepening loan fraud case, Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL) Managing Director K. Murugan and staffer Kalaivanan were arrested Friday night, following earlier arrests of three others linked to loan irregularities.
Police said five people have been held so far for approving loans without following proper procedures and for suspicious financial transactions. An FIR was previously filed against the bank’s vice-chairman and former Congress MP Kuldeep Rai Sharma.
Allegations include bypassing CIBIL checks and mandatory documentation. Authorities are tracing money trails to several individuals as the investigation into the scam continues.