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The Enforcement Directorate has attached assets worth ₹121.35 crore in the alleged Andaman cooperative bank loan fraud case.
What Has the ED Attached?
The Enforcement Directorate (ED) has provisionally attached 40 assets worth ₹121.35 crore in its investigation into alleged loan irregularities at the Andaman and Nicobar State Cooperative Bank (ANSCBL). The latest action brings the total value of attached properties to approximately ₹326.91 crore.
The attachment order, issued by the ED’s Kolkata Zonal Office-II under the Prevention of Money Laundering Act (PMLA), covers 35 immovable properties and five movable assets. These include land parcels, the Jove Grand Hotel, two semi-submarine tourist vessels and balances held in three bank accounts.
The agency has also filed a supplementary prosecution complaint before the Special PMLA Court in Port Blair, naming 13 additional persons and entities as accused. The total number of accused in the case has consequently increased to 52.
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How Was the Alleged Loan Fraud Carried Out?
The investigation originated from a police complaint against former Member of Parliament and ANSCBL vice-chairman Kuldeep Rai Sharma and others. According to the ED, Sharma allegedly worked with senior bank officials and associates to sanction loans through shell companies and other entities in violation of banking regulations.
Investigators identified 23 alleged shell companies, of which 21 received loans totalling approximately ₹301.50 crore. Loans worth around ₹271 crore involving 18 companies subsequently became non-performing assets. The agency alleges that funds were withdrawn in cash or transferred through multiple accounts before being used to acquire properties.
The ED also alleged that Sharma and the bank’s former managing director, K Murugan, received commissions of approximately 5% on certain sanctioned loans. Investigators further claimed that properties were deliberately overvalued to secure larger loans. In some instances, land purchased for approximately ₹1 crore was allegedly valued at ₹10 crore or more in loan documents.
Which Properties and Individuals Are Involved?
Among the attached assets are the Jove Grand Hotel property and two semi-submarine tourist vessels imported from Croatia. The vessels, valued at approximately ₹2.11 crore, were registered under Andaman Escapades Pvt Ltd. The ED alleges they were purchased using funds diverted from a loan sanctioned to Heyday Hospitality Services Pvt Ltd.
The supplementary complaint names several individuals, including Jayanta Bala, J Suresh Chandran, John Robert Babu, Anil Kumar, Md Ali, P Abhilash and Kiran Lal NH, alongside associated companies.
The agency has separately alleged that Sharma and his wife, Vinita Sharma, benefited from fraudulent loans totalling approximately ₹81.10 crore through companies linked to them.
What Happens Next in the Investigation?
The ED estimates that the alleged fraud generated proceeds of crime exceeding ₹500 crore. Its investigation has examined the involvement of borrowers, bank officials, shell companies and property intermediaries in the alleged diversion of loan funds.
The agency had earlier filed its first prosecution complaint against 39 persons and entities on November 14, 2025. It subsequently attached 51 properties valued at ₹205.56 crore in February 2026, an attachment confirmed by the adjudicating authority in August.
With the latest attachment taking the cumulative value to ₹326.91 crore, the ED has sought confiscation of the properties in its supplementary prosecution complaint. The investigation remains ongoing, with the allegations subject to judicial proceedings.
