Ex-MP, bank officials arrested in ₹500cr Andaman bank fraud
Big news from the Andamans: Kuldeep Rai Sharma, a former MP and ex-chairman of the Andaman Nicobar State Cooperative Bank, was arrested on Wednesday, September 17, 2024, along with two top bank officials, K Murugan (Managing Director) and K Kalaivanan (Loan Officer).
The Enforcement Directorate says they're behind a massive ₹500 crore bank fraud—allegedly handing out shady loans to over 100 shell companies and breaking all the banking rules.
First arrests under money laundering laws in the islands
Investigators say about ₹230 crore was funneled for personal use through cash withdrawals and commission kickbacks.
This is the first time anyone's been arrested under money laundering laws in the islands.
After police filed an FIR, Sharma and Kalaivanan were sent to eight days of ED custody by a special court.
Raids at over 20 spots turned up evidence of fake loans given in relatives' names and cash payoffs to insiders—loans were fraudulently availed in the names of relatives, bringing family members under scrutiny as the probe widens.