Andaman CID submits 50,000 page charge sheet in ANSCBL loan scam case

The CID of Andaman and Nicobar Police has filed a 50,000-page chargesheet in the ANSCBL loan scam case and has named 100 people and firms as accused, including Congress's ex-Andaman MP Kuldeep Rai Sharma, an officer said on Sunday.

The chargesheet was filed on Saturday in the Chief Judicial Magistrate (CJM) Court in Port Blair.

A total of eight accused, including Sharma, K Murugan, managing director, ANSCBL and K Kalaivanan, manager (loan), have been arrested in the Andaman and Nicobar State Cooperative Bank Limited (ANSCBL) loan scam.

Sharma is a former chairman of ANSCBL.

Speaking to PTI, Senior Superintendent of Police (CID), Jitendra Kumar Meena said, "During the course of investigation, a total of 23 shell companies were identified and busted. These entities had no genuine business operations and were created solely for fraudulently availing high-value loans and diverting public funds."  "Our officers conducted more than 10 search and seizure operations at various offices, residences, and business premises of the accused persons and firms, across Andaman and Nicobar Islands and documents, loan files, property papers, electronic devices, bank records, and registers were seized," the SSP said.

During the investigation, a detailed forensic audit of the bank accounts was also conducted, and statements of more than 200 witnesses were examined, he said.

"Assistance is also being sought from central agencies for further investigation. Voice samples of key accused persons, including Kuldeep Rai Sharma and others, were also collected for forensic examination. The filing of this chargesheet marks a major step in unearthing one of the largest financial frauds in the history of the Islands," he said.

A police statement said, "The fraudulent loans through these entities alone amounted to Rs 316.5 crore. Investigation revealed large-scale diversion of loan amounts into purchase of immovable properties, land, and luxury assets in the names of relatives and associates of the accused. These assets have been identified as proceeds of crime and the attachment process has been initiated under the relevant provisions of law."  "The chargesheet establishes that the accused persons misused their official positions and conspired to sanction overdraft and high-value loans in violation of Credit Management Assessment (CMA) norms, NABARD and RBI circulars/guidelines, ANSCBL's own lending policies, and orders of the Registrar of Cooperative Societies (RCS). These violations were deliberately overlooked to benefit shell companies and associated individuals," the statement said.