ED attaches Rs 200 crore worth assets in Andaman bank fraud case
The Enforcement Directorate on Friday said it has attached hotels, resorts and land parcels worth Rs 200 crore in the Andaman and Nicobar Islands as part of a money laundering probe.
These assets were “directly or indirectly” derived out of, or involved in, the Rs 500 crore fraud committed at the Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL).
A total of 51 immovable properties worth Rs 200.02 crore have been attached after a provisional order was issued under the Prevention of Money Laundering Act (PMLA), the federal agency said in a statement. These properties stand in the names of the accused persons, their family members, close associates and companies and firms controlled by them, the ED said. It, however, did not specify as to exactly whom the attached assets belonged to.
The attached properties were acquired from various landowners and farmers in the name of dummy directors and shell companies through powers of attorney to conceal the actual consideration amount, as per the agency.
The money laundering case stems from an FIR of the Crime and Economic Offences Cell of the Andaman and Nicobar Police against former local MP and Congress leader Kuldeep Rai Sharma, Managing Director of the bank K Murugan, loan officer K Kalaivanan and hotelier Sanjay Lal, apart from some other individuals and companies. All these persons were arrested by the agency.
The ED alleged that Sharma, vice-chairman of the bank and the alleged mastermind of the fraud, in collusion with his accomplices, operated 23 shell companies and some other entities for “fraudulently” availing loans from the cooperative bank.
More than 100 high-’value loans were sanctioned to these entities deliberately in gross violation of NABARD guidelines, RBI directions and internal circulars of ANSCBL, the ED claimed.
A chargesheet was filed by the ED in November 2025 before a special PMLA court in Port Blair against 39 entities, including the named accused.
The Calcutta (Port Blair Bench) recently dismissed the bail plea of Sharma and Sanjay Lal.
