Port Blair, Sep 18 (PTI) The Enforcement Directorate (ED) on Thursday took ex-Congress MP of Andaman and Nicobar Islands Kuldeep Rai Sharma, arrested in connection with the ANSCBL loan scam, to Kolkata, an officer said.

Sleuths from the Directorate of Enforcement (ED), Kolkata Zonal Office had arrested Kuldeep Rai Sharma, former chairman of ANSCBL, K Murugan, former managing director of Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL), and K Kalaivanan, former loan officer (ANSCBL) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, on Wednesday evening, the officer said.

A Special Court (PMLA) has remanded them to ED custody for a period of eight days.

Sharma, Murugan and Kalaivanan were taken to Kolkata from Port Blair by ED officers on Thursday.

"They will be taken to our ED office at Salt Lake after their medical examination. Our officers went to Port Blair on September 15 and conducted raids and search operations at several offices and houses of businessmen and bank officials. Our investigation is going on, and we will share more updates in due course," a senior ED official said.

The investigation stems from an FIR (on May 15, 2025) registered by the Crime & Economic Offences Cell, Andaman & Nicobar Police, against bank officials and private individuals.

On July 18, 2025, the Crime & Economic Offences Cell (Andaman Police) had arrested Sharma (former chairman of the ANSCBL) in connection with the loan irregularities case.

The arrest was made following a complaint from the deputy registrar of the cooperative societies (HQ), which alleged gross irregularities in sanctioning loans to various people by the lender.

Later, ED has also started a parallel investigation. On July 31, they conducted their first search operation at the Andaman and Nicobar Islands. In the last two weeks, they (ED) have summoned more than 10 people to Kolkata for examination.

ED's probe has revealed a wide-ranging conspiracy in which loans worth over Rs 500 crore were sanctioned fraudulently through more than 100 accounts opened in the names of shell companies and firms.

According to ED findings, around Rs 230 crore was allegedly siphoned off for the exclusive benefit of Kuldeep Rai Sharma and his close associates, including the MD and loan officer of ANSCBL.

"The officials not only sanctioned loans in blatant violation of banking norms but also facilitated multiple loans for associates in exchange for a 5% commission, routed either through cash or shell company accounts," a statement issued by the ED said.

Further searches are being conducted at three premises in the Andaman & Nicobar Islands, following earlier raids at 21 locations on July 31 and August 1, 2025.

"Investigations indicate that large portions of the loan amounts were withdrawn in cash and distributed as illegal gratification among senior bank officials, including the former MP," the statement reads. PTI SN SN RG

Money laundering probe under PMLA leads to custodial remand and transfer for continued investigation involving bank officials. Arrests under the Prevention of Money Laundering Act followed an FIR alleging loan irregularities at ANSCBL; the Enforcement Directorate conducted raids, initiated a parallel PMLA probe, obtained custodial remand for interrogation, and alleges a conspiracy using shell-company accounts to fraudulently sanction loans and siphon funds as illicit gratification to officials and associates.