ED Attaches ₹200 Crore Worth Of Hotels, Resorts And Land In ANSCBL Loan Fraud Case

The Directorate of Enforcement (ED), Kolkata Zonal Office, has provisionally attached 51 immovable properties valued at approximately ₹200.02 crore under the Prevention of Money Laundering Act, 2002, in connection with the massive loan fraud at the Andaman & Nicobar State Co-operative Bank (ANSCBL). The attached assets include hotels, resorts and large parcels of land located across the Andaman and Nicobar Islands.

The money laundering probe was initiated on the basis of an FIR registered by the Crime and Economic Offences Police Station, Andaman & Nicobar Police, against former MP Kuldeep Rai Sharma and others. The ED alleged that Sharma, while serving as Vice-Chairman of the bank, colluded with associates to float and operate at least 23 shell companies to fraudulently obtain loans. Over ₹301.50 crore in loans and overdrafts were sanctioned to shell entities, of which ₹271 crore turned non-performing. Overall, high-value NPAs exceeding ₹420 crore were created in violation of RBI and NABARD guidelines.

Investigators found that the proceeds of crime were diverted to acquire properties through dummy directors and shell firms, often using powers of attorney to conceal the real consideration. Several land parcels were allegedly over-valued and mortgaged to secure further loans. The ED further alleged siphoning of funds through cash withdrawals and layered transactions.

Earlier, the ED arrested Kuldeep Rai Sharma, hotelier Sanjay Lal and bank officials K Murugan and K Kalaivanan, and filed a prosecution complaint before the Special PMLA Court, Port Blair. Their bail pleas were rejected, including by the High Court of Calcutta (Circuit Bench at Port Blair).

Further investigation in the case is ongoing.