Calcutta HC rejects bail plea Kuldeep Rai in bank fraud case
The Calcutta High Court on Tuesday rejected the bail applications of former MP of Andaman and Nicobar Islands Kuldeep Rai Sharma and Sanjay Lal, another accused, in connection with a Rs 500 crore bank fraud case.
The Criminal Miscellaneous case heard by a Single Bench (CRM-SB) of Justice Apurba Sinha Ray, however, granted bail to K Murugan, former managing director of Andaman and Nicobar State Cooperative Bank (ANSCBL), on health grounds.
Sharma, who is also the ex-chairman of the ANSCBL, and Murugan were arrested on September 17, 2025, while Lal was picked a month later by the Enforcement Directorate (ED) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
“Upon hearing both sides at length, Justice Apurba Sinha Ray rejected the bail application of ex-Andaman MP Kuldeep Rai Sharma and Sanjay Lal, while granting bail to K Murugan on health grounds,” an ED official said.
“They were arrested in connection with an ANSCBL fraud case of more than Rs 500 Crore,” the official said.
The investigation stems from an FIR registered on May 15, 2025, by the Crime & Economic Offences Cell, Andaman & Nicobar Police, against bank officials and private individuals. On July 18, the Cell arrested Sharma in connection with the case involving loan irregularities.
The arrest was made following a complaint from the deputy registrar of the cooperative societies, which alleged gross irregularities in sanctioning loans to various people by the lender.
Later, ED started a parallel investigation and conducted a search operation at the Andaman and Nicobar Islands on July 31 that year.
ED’s probe has revealed a wide-ranging conspiracy in which loans worth over Rs 500 crore were sanctioned fraudulently through more than 100 accounts opened in the names of shell companies and firms.
According to ED findings, around Rs 230 crore was allegedly siphoned off for the exclusive benefit of Kuldeep Rai Sharma and his close associates, including the MD and loan officer of ANSCBL.
