The Enforcement Directorate (ED) has carried out its first-ever search operation in the Union Territory of Andaman & Nicobar Islands, exposing a massive financial fraud linked to the Andaman Nicobar State Cooperative Bank (ANSCB).
The searches were conducted on July 31 and August 1, 2025, at multiple locations, including premises associated with Kuldeep Rai Sharma, former Member of Parliament from the Andaman & Nicobar Islands.
According to ED officials, the searches have unearthed a large-scale loan scam involving more than Rs. 500 crore. Investigators revealed that over 100 loan accounts were used to fraudulently secure loans from the cooperative bank, pointing to systemic corruption and collusion among key individuals.
In a significant breakthrough, the agency has also recovered property documents worth over ₹100 crore during the operation. These are suspected to be linked to the proceeds of crime and are now under forensic scrutiny.
“This is a serious case of misuse of public financial institutions and diversion of funds meant for development and cooperative welfare. The magnitude of the fraud suggests a well-organized conspiracy,” said a senior ED official involved in the probe.
The case has sent shockwaves across the island administration, as this marks the first time the central enforcement agency has stepped in with such force. The former MP Kuldeep Rai Sharma, who has previously held significant political influence in the islands, is now under the scanner for his alleged links to the scam.
The ED is continuing its investigation under the provisions of the Prevention of Money Laundering Act (PMLA), and more raids and summons are expected in the coming days.
Authorities have also hinted at possible arrests as they unravel the trail of money and uncover how such a massive loan fraud could be executed within a cooperative banking system in a remote union territory.
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