SRI VIJAYA PURAM | NOVEMBER 11, 2026 | DWEEP TULIKA | ANDAMAN NEWS
The Enforcement Directorate (ED) has intensified its investigation into the alleged ₹500-crore fraud involving the Andaman and Nicobar State Cooperative Bank Limited (ANSCBL), provisionally attaching another 40 assets valued at approximately ₹121.35 crore and filing a supplementary prosecution complaint against former Member of Parliament Kuldeep Rai Sharma and 13 other persons and entities.
According to an official statement issued by the ED, its Kolkata Zonal Office-II issued the latest Provisional Attachment Order on November 5, 2026, under the Prevention of Money Laundering Act (PMLA), 2002.
The attached assets comprise 35 immovable and five movable properties, including land parcels, the Joye Grand Hotel, two semi-submarine tourist vessels and bank balances held in three accounts.
The agency also filed the supplementary prosecution complaint before the Special PMLA Court in Port Blair on November 6, taking the total number of accused persons and entities named in the case to 52.
Investigation Points to Alleged Loan Diversion Through Shell Companies
The investigation originated from an FIR registered by the Crime and Economic Offences Police Station of the Andaman and Nicobar Police.
The ED has alleged that Kuldeep Rai Sharma, who served as Vice-Chairman of ANSCBL, along with bank officials and associates, facilitated the sanctioning of substantial loans through shell companies in violation of banking regulations.
According to the agency, 23 shell companies were allegedly established without genuine business operations, with associates and other individuals acting as nominal directors.
Loans amounting to approximately ₹301.50 crore were sanctioned to 21 of these companies. Of this amount, around ₹271 crore subsequently became Non-Performing Assets (NPAs) across 18 cases, according to the ED.
The agency has alleged that loan proceeds were diverted through cash withdrawals and multiple banking transactions before being invested in land and other assets in the names of family members, associates and other individuals.
The ED has further claimed that the alleged proceeds of crime in the wider investigation exceed ₹500 crore. It has also alleged that certain senior bank officials and associates received commissions amounting to approximately five per cent of the sanctioned loan amounts.
Joye Grand Hotel and Two Semi-Submarine Vessels Among Attached Assets
Among the properties covered by the latest attachment order are the land and building of Joye Grand Hotel and two semi-submarine tourist vessels imported from Croatia at a reported cost of approximately ₹2.11 crore.
The vessels are registered in the name of Andaman Escapades Pvt. Ltd. The ED has alleged that they were purchased for Kuldeep Rai Sharma using funds obtained through a loan sanctioned in the name of a shell company, Heyday Hospitality Services Pvt. Ltd.
The agency has also alleged that several properties were acquired through Powers of Attorney and sale agreements in the names of borrowers, accused persons and nominal directors before being mortgaged to the bank at allegedly inflated valuations to secure further loans.
In certain instances, the ED claims that land purchased for approximately ₹1 crore was valued at ₹10 crore or more in loan documentation, enabling loans substantially higher than the alleged actual market value of the properties.
Total Value of Attached Assets Reaches ₹326.91 Crore
The latest action follows an earlier attachment order dated February 10, 2026, through which the ED provisionally attached 51 properties valued at approximately ₹205.56 crore.
The Adjudicating Authority subsequently confirmed that attachment on August 4, 2026.
With the latest attachment of ₹121.35 crore, the total value of assets attached in the ANSCBL case has reached approximately ₹326.91 crore, according to the agency.
The ED had earlier arrested Kuldeep Rai Sharma, K. Murugan, the then Managing Director of ANSCBL, who is now deceased, K. Kalaivanan, a loan officer, and hotelier Sanjay Lal.
Its initial prosecution complaint was filed before the Special PMLA Court in Port Blair on November 14, 2025, against 39 persons and entities. The supplementary complaint filed on November 6 adds another 13 persons and entities to the proceedings.
The ED has stated that further investigation into the alleged financial irregularities and diversion of loan funds is continuing.
Judicial Proceedings Yet to Establish Guilt
The latest attachment and supplementary prosecution complaint mark further developments in the investigation into the alleged financial irregularities at ANSCBL.
However, the allegations outlined in the case are based on the ED's investigation and claims. Provisional attachment of properties and the filing of prosecution complaints do not, by themselves, establish the guilt of the accused.
The matter remains subject to adjudication and judicial proceedings, while the agency continues its investigation.