Ex-Congress MP Kuldeep Rai Sharma Arrested in Andaman Bank Loan Scam

The Andaman and Nicobar Islands’ CID arrested former Congress MP and Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL) Vice Chairman Kuldeep Rai Sharma on Friday in a high-profile loan irregularities case. Sharma, apprehended at Dr. Ritika’s Diagnostic Solutions Multi-Speciality Hospital in Port Blair during treatment, faces allegations of orchestrating a ₹950 crore scam involving fake gold loans and forged appraisals, as per social media campaigns and police findings.

The FIR, filed on May 15, 2025, names Sharma, the late former chairman Bhagat Singh, and other bank officials and beneficiaries for bypassing loan screening protocols, ignoring CIBIL reports, and sanctioning loans without proper documentation. Investigations uncovered suspicious money trails to accounts of a driver, a tea stall owner, and a mechanic, with 65 loan files seized and accounts of shell companies frozen.

Since June 25, eight individuals, including ANSCBL Managing Director K. Murugan, employee Kalaivanan, directors Bablu Halder, Tarun Mondal, Ajay Minz, K. Subramanian, and tour operator M. Sajid, have been arrested. The CID is pursuing a forensic audit to trace fund misuse, amid claims of 58% non-performing assets.

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Sharma’s passport was seized in June, and he was questioned earlier for approving dubious loans. A medical board may reassess his health as legal proceedings await court directives. The scandal has sparked political outrage, with CPI(M) criticizing the silence of BJP and Congress leaders, intensifying calls for transparency in the islands’ cooperative banking sector.

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