ED Seizes Rs 200 Crore Andaman Assets in Major Cooperative Bank Fraud Probe
The Enforcement Directorate (ED) has taken decisive action in a high-profile money laundering investigation, attaching multiple hotels, resorts, and land parcels valued at over Rs 200 crore in the picturesque Andaman and Nicobar Islands. This move is part of a comprehensive probe into allegations of massive financial misappropriation exceeding Rs 500 crore from the Andaman & Nicobar State Cooperative Bank.
Former Congress MP Among 39 Accused in Elaborate Scheme
Central to this investigation is former Congress Member of Parliament Kuldeep Rai Sharma, whose bail application was recently rejected by the Calcutta High Court. Sharma, who served as the vice-chairman of the cooperative bank during the alleged fraud period, stands accused alongside 38 other individuals. This group includes family members of the accused, several bank officials, and close associates allegedly involved in the elaborate scheme.
"Investigation has conclusively revealed that Sharma, in collusion with his accomplices, established and operated 23 shell companies along with numerous other entities specifically for the purpose of fraudulently obtaining loans from the bank," stated the ED in an official release issued on Friday.
51 Properties Attached Under PMLA Provisions
The agency's attachment order dated February 10 lists an impressive 51 properties that have been formally attached under the stringent provisions of the Prevention of Money Laundering Act (PMLA). According to ED officials, these properties represent the alleged proceeds of crime and are registered in the names of the accused persons, their family members, close associates, and various companies and firms controlled by them.
Shell Companies and Violated Banking Norms
Detailed investigation has uncovered that fraudulent loans and overdraft facilities totaling over Rs 300 crore were systematically sanctioned in the names of 21 carefully created shell companies. Alarmingly, loans extended to 18 of these shell companies, amounting to a substantial Rs 271 crore, subsequently turned into non-performing assets, causing significant financial damage to the cooperative bank.
"In total, more than 100 high-value loans were deliberately sanctioned to these entities in gross violation of established Nabard guidelines, Reserve Bank of India directives, and the internal circulars of the cooperative bank itself," emphasized the investigating agency in their statement.
Systematic Violation of Banking Protocols
The ED's findings paint a picture of systematic disregard for banking norms and protocols:
- Deliberate sanctioning of loans to shell companies with questionable credentials
- Multiple violations of Nabard (National Bank for Agriculture and Rural Development) guidelines
- Disregard for RBI (Reserve Bank of India) directives regarding cooperative banking operations
- Flouting of the bank's own internal circulars and governance standards
This case represents one of the most significant financial fraud investigations in the history of the Andaman and Nicobar Islands, highlighting vulnerabilities in cooperative banking systems and the sophisticated methods employed to circumvent financial regulations. The attachment of prime properties in the island territory underscores the substantial scale of the alleged money laundering operation.
