Sri Vijaya Puram, Sep 21:The Crime & Economic Offence Police Station, CID Unit, Andaman & Nicobar Police, has filed a comprehensive chargesheet comprising over 50,000 pages before the Hon’ble Court on 19.09.2025 in the large-scale financial fraud involving the Andaman & Nicobar State Cooperative Bank (ANSCB). A total of 100 persons/firms have been chargesheeted, including former Member of Parliament and Ex-Chairman of ANSCB Kuldeep Rai Sharma, K.Murugan, Managing Director(ANSCB) and Kalaivanan, Manager(Loan), ANSCB. So far, 08 accused persons have been arrested and are in judicial custody, including senior bank officials and dummy directors of various shell companies. Voice samples of key accused persons, including Kuldeep Rai Sharma and others, were collected for forensic examination
During the investigation, about 10 search and seizure operations were carried out at various offices, residences, and business premises of the accused persons & firms, across Andaman & Nicobar Islands. Incriminating documents, loan files, property papers, electronic devices, bank records, and registers were seized. A total of 23 shell companies were identified and busted. These entities had no genuine business operations and were created solely for fraudulently availing high-value loans and diverting public funds. The fraudulent loans through these entities alone amounted to ₹316.5 crores. Investigation revealed large-scale diversion of loan amounts into purchase of immovable properties, land, and luxury assets in the names of relatives and associates of the accused. These assets have been identified as proceeds of crime and the attachment process has been initiated under the relevant provisions of law.
A detailed forensic audit of the bank accounts was also conducted, and assistance was taken from experts from nationalised banks, NABARD, the Registrar of Cooperative Societies (RCS), and other regulatory authorities to trace the flow of funds, layering of transactions, and identification of beneficiaries. Evidence collected during investigation includes 91 loan files, 19 mortgage and loan registers, 16 Board registers, hundreds of original cheques and deposit slips, and electronic evidences including CDs, pen drives, and mobile phones containing conversations of accused persons. Statements of more than 200 witnesses and accused persons were recorded during investigation. The chargesheet establishes that the accused persons misused their official positions and conspired to sanction overdraft and high-value loans in violation of Credit Management Assessment (CMA) norms, NABARD and RBI circulars/guidelines, ANSCB’s own lending policies, and orders of the Registrar of Cooperative Societies (RCS). These violations were deliberately overlooked to benefit shell companies and associated individuals.
The investigation has brought to light a systematic and organised conspiracy led by Chairman and Vice-Chairman of the board in connivance with senior bank officials, dummy directors, and business associates. The filing of this chargesheet marks a major step in unearthing one of the largest financial frauds in the history of the Islands. The present chargesheet is an initial submission, as the seized documents are voluminous and still under detailed scrutiny. Certain names of individuals and firms have already surfaced during investigation, and new names/firms are likely to emerge in the course of further investigation. Subsequent investigation to trace additional beneficiaries and assets is continuing, assistance is also being sought from Central Agencies for further investigation, and supplementary chargesheets will be filed as and when required.
