• Source:JND
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Cooperative Bank Loan Fraud: The Enforcement Directorate (ED) on Wednesday busted a major bank loan fraud network after arresting Kuldeep Rai Sharma, a former Member of Parliament from the Andaman and Nicobar Islands, and two others in connection with a bank fraud case worth Rs 500 crore.

The Central probe agency said its Kolkata Zonal Office arrested Sharma, who is also the ex-Chairman of Andaman and Nicobar State Cooperative Bank (ANSCBL); and K Murugan, Managing Director (ANSCBL); and K Kalaivanan, Loan Officer (ANSCBL), under the provisions of the PMLA, 2002. They were produced before a special Prevention of Money Laundering Act (PMLA) court. The court remanded Sharma and K Kalaivanan to ED custody for a period of eight days. These are the first-ever arrests made by ED in the Union Territory of Andaman and Nicobar Islands.

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Here Are The Other Key Highlights Of The Case

- ED launched a probe after an FIR was registered by the Crime and Economic Offences Cell, Andaman and Nicobar Police, against various private persons and officials of the bank.

- ED said the case pertains to the fraud committed by the officials of Andaman and Nicobar State Cooperative Bank Ltd, including Sharma and others responsible for sanctioning bank loans.

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- "These persons, in connivance with their accomplices, floated several shell companies and sanctioned large loans to them as well as to their regular entities in flagrant violation of the rules and lain down procedure of the bank with the sole intent of not repaying the funds, thereby causing losses to the bank and generating corresponding gains for themselves," said the ED in a statement.

- ED said its investigation conducted so far indicated that loan facilities were sanctioned through more than 100 loan accounts in the names of various firms and shell companies.

- The accused bypassed the laid-down procedures and guidelines of the bank, and the amount involved in the fraud and Non-Performing Assets (NPA) exceeds Rs 500 crore.

- "Evidence collected so far also indicates that a loan amount of Rs 230 crores was fraudulently taken exclusively for the benefit of Kuldeep Rai Sharma and his associates, including the Managing Director and Loan Officer," stated the ED.
(With ANI inputs)