The Directorate of Enforcement (ED) has taken into custody Kuldeep Rai Sharma, former MP from Andaman and Nicobar Islands, K Murugan, Managing Director (ANSCBL); and a loan officer K Kalaivanan, under provisions of the PMLA, in connection with an alleged bank fraud case.
Following the arrest on Wednesday, they were produced before the special court, and they have been remanded to ED’s custody for a period of eight days.
The anti- money laundering agency had initiated its investigation on the basis of an FIR registered by the Crime & Economic Offences Cell of the Andaman and Nicobar Police, against various private persons and officials of the bank.
The case pertains to the alleged fraud committed by the officials of the said bank, including Sharma and others responsible for sanctioning bank loans.
It is alleged that 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 intent of not repaying the funds, thereby causing losses to the institution.
Probe conducted so far indicates that loan facilities were sanctioned through more than 100 loan accounts in the names of various firms and shell companies, and the amount involved in the said fraud exceeds Rs. 500 Crore.
As per ED, evidence so far collected indicates that a loan amount of Rs. 230 crores (approximately) was fraudulently taken exclusively for the benefit of Sharma and his associates including the MD and the Loan Officer.
ED investigation has also revealed that the concerned bank officials also fraudulently availed loans from the bank in the names of companies incorporated in the name of relatives.
Further, searches are being conducted at three premises in the Andaman & Nicobar Islands in furtherance to earlier searches in relation to the diversion of bank funds.
In this case, earlier searches were conducted at 21 premises on July 31 and August 1, including those of shell companies allegedly created by Sharma in connivance with his associates.
Further investigation is under progress in this regard, officials said.