In a first-of-its-kind operation, the Enforcement Directorate (ED) conducted raids in the Andaman and Nicobar Islands on Thursday, July 31, 2025, as part of a money laundering investigation. The probe is linked to an alleged fraud involving a cooperative bank and a former Member of Parliament (MP) from the Union Territory.

The case revolves around the Andaman Nicobar State Cooperative Bank (ANSCB) and its vice chairman, Kuldeep Rai Sharma. Sharma, a 57-year-old Congress leader, served as the MP for the islands from 2019 to 2024. The ED's investigation stems from an FIR filed by the Crime and Economic Offences Wing of the Andaman Nicobar Police. The FIR alleges irregularities and fraud involving various private individuals and bank officials.

During the operation, ED officials conducted searches at nine locations in and around Port Blair, as well as two locations in Kolkata. This marks the agency's first foray into the Union Territory in the Bay of Bengal. According to sources, the ED has recovered documents indicating "large-scale" irregularities in the granting of loans and overdraft facilities by ANSCB. Evidence suggests that loan facilities were extended to various shell companies and firms, disregarding the bank's established procedures and guidelines.

The ED's investigation has revealed that a group of approximately 15 entities or companies were allegedly created by suspects to benefit Sharma. These entities purportedly obtained loans exceeding ₹200 crore from ANSCB through fraudulent means. Furthermore, a significant portion of these funds was reportedly withdrawn in cash and funneled to Sharma and other beneficiaries. The probe agency found that the suspect established 15 entities and paper companies to give "benefits" to a former MP of A&N Islands. "These 15 shell companies and paper companies had taken a loan of Rs 200 crores from Andaman & Nicobar Island Cooperative Bank . The money was then routed in these shell companies," said officials.

The role of Sharma is currently under scrutiny by the ED. Investigators are working to determine the full extent of the alleged fraud and identify all those involved. The ED's actions underscore the agency's commitment to combating financial crimes and ensuring the integrity of the banking system, even in remote regions of the country. The investigation is ongoing.