Investigation revealed that Kuldeep Rai Sharma, Ex-MP, Andaman & Nicobar Islands being the then Vice Chairman of the bank, operated 23 shell companies and other entities for the purpose of fraudulently availing loans from ANSCBL.
FinTech BizNews Service
Mumbai, 13 February 2026: Directorate of Enforcement (ED), Kolkata Zonal Office has issued a Provisional Attachment Order dated 10.02.2026 under the provisions of PMLA, attaching therein 51 immovable properties having a total value of Rs200.02 Crore (approx.) in the Andaman & Nicobar State Co‑operative Bank (ANSCBL) fraud case, as per a press release issued by the ED today.
The attached properties include hotels, resorts and parcels of land situated in the Andaman & Nicobar Islands. ED initiated money‑laundering investigation on the basis of FIR registered by Crime & Economic Offences Police Station, Andaman & Nicobar Police under various sections of IPC, 1860 against Kuldeep Rai Sharma and other persons. Investigation under PMLA has revealed that Kuldeep Rai Sharma, Ex-MP, Andaman & Nicobar Islands being the then Vice‑Chairman of the bank in collusion with his accomplices, floated and operated 23 shell companies and a large number of other entities for the purpose of fraudulently availing loans from ANSCBL. Loans and overdraft to the tune of about Rs301.50 Crore were sanctioned in the names of 21 shell companies alone, out of which loans of 18 shell companies amounting to Rs. 271 Crore turned Non‑Performing Assets (NPAs).
In total, more than 100 high‑value loans were sanctioned to these entities deliberately in gross violation of NABARD guidelines, RBI directions and internal circulars of ANSCBL. The NPA amount involved in such high‑value accounts (loan amount above Rs. 1 Crore) alone is more than Rs. 420 Crore, which forms a substantial part of the overall NPA of the bank as on day.
During investigation, ED identified 51 immovable properties, comprising mainly lands, hotels, and resorts in Andaman & Nicobar Islands, which have been found to be directly or indirectly derived out of, or involved in, the Proceeds of Crime generated from the fraud committed at ANSCBL. These properties stand in the names of the accused persons, their family members, close associates and companies/firms controlled by them. With the present attachment of Rs. 200 Crore (approx.), ED has secured a significant part of the Proceeds of Crime identified so far in the ANSCBL fraud.
