Enforcement Directorate's Landmark Raid: Unveiling Cooperative Bank Loan Fraud in Andaman

The Enforcement Directorate (ED) executed its first-ever search operations in the Andaman and Nicobar Islands as part of an investigation into a money laundering case linked to a cooperative bank loan scandal. The probe involves the Andaman Nicobar State Cooperative Bank (ANSCB) and its former vice-chairman, Kuldeep Rai Sharma, a one-time Congress MP of the Union Territory.

On Thursday, ED officials conducted searches across nine places in Port Blair and two locations in Kolkata, as per the Prevention of Money Laundering Act (PMLA). This unprecedented move by the central agency unveiled significant irregularities, with documents indicating fraudulent loans exceeding Rs 200 crore being granted to shell companies associated with suspects.

Kuldeep Rai Sharma was previously apprehended by local police, along with seven other individuals, as the investigation unfolds. Allegations have arisen that the inquiry is politically motivated, a claim strongly refuted by Congress. The ongoing probe highlights serious breaches in bank procedures and regulations.

(With inputs from agencies.)