ED Launches First-Ever Raid in Andaman & Nicobar Islands

Quick Summary

• The Enforcement Directorate (ED) conducted its first search operation in the Andaman & Nicobar Islands on July 31, 2025, as part of an examination into alleged fraud at the Andaman Nicobar State Cooperative Bank (ANSCB).
• searches were conducted at nine locations in Port Blair and two locations in Kolkata.
• Seized documents reportedly reveal large-scale irregularities, including loans and overdraft facilities extended to shell companies while bypassing bank procedures.
• The ED alleges that approximately ₹200 crore worth of fraudulent loans were taken by a group of about 15 entities created for the benefit of Kuldeep Rai Sharma, former MP and Vice-chairman of ANSCB.
• A significant portion of these loans was purportedly withdrawn in cash to benefit Mr. sharma and others.
• The investigation is based on an FIR filed by the Crime and Economic Offences wing of the Andaman & Nicobar Police.

Indian Opinion Analysis

The ED’s operation highlights serious systemic issues within institutions like cooperative banks when governance protocols are not strictly enforced. If proven true, allegations involving public figures such as Kuldeep Rai Sharma indicate troubling instances where political influence may have been leveraged for personal gain at significant financial cost to banking systems meant to serve local communities.For India, this case underscores the ongoing challenge of ensuring transparency and accountability within public financial institutions-particularly at regional levels with less oversight mechanisms compared to larger banks.

Moreover, initiatives like this by investigative agencies coudl act as a deterrent against future misuse but also place greater scrutiny on regulatory lapses that allowed systemic abuse over time. To uphold public trust in cooperative banking systems-an essential financial lifeline for many rural areas-it is indeed crucial that such cases lead not only to accountability but also reforms aiming at stricter institutional safeguards.

Read more: Andaman cooperative bank fraud case