Former Andaman and Nicobar Islands MP Kuldeep Rai Sharma has been questioned by the Crime Investigation Department (CID) over alleged loan irregularities at the Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL). Sharma, who serves as the vice-chairman of ANSCBL, is under investigation for sanctioning loans without proper screening, leading to suspicions of fund misuse.
Authorities have seized Sharma’s passport as part of the probe and have also confiscated original loan files of 65 individuals and firms, including those linked to former chairman Bhagat Singh (Sharma’s father), ANSCBL directors, and their relatives. Investigators suspect that large withdrawals in a short period indicate possible misuse or diversion of funds.
The police are now working with forensic audit experts to trace the flow of funds from sanctioned loans to their final utilization. Additionally, seized documents suggest manipulation in property valuation certificates, raising further concerns about financial misconduct.
An FIR was lodged on May 15 following complaints from the Deputy Registrar of Cooperative Societies, alleging gross irregularities in loan approvals. Reports indicate that the ANSCBL’s managing committee overlooked recommendations from the loan screening committee and ignored CIBIL reports while approving advances. Some loans were allegedly disbursed to unfit applicants without following banking norms, and in certain cases, unsigned site verification reports were submitted during the loan approval process.
Authorities are continuing their investigation and may file a charge sheet once all evidence is reviewed. Sharma has been asked to appear before investigators whenever required, as the probe into the financial irregularities deepens.
