Andaman bank loan 'irregularities': CID unearths shell companies, freezes accounts

Port Blair: The Andaman and Nicobar Islands Police have unearthed several shell companies during its investigation into alleged irregularities in sanctioning loans by a cooperative bank, and frozen the accounts of those firms, officials said.

Earlier, an FIR was lodged against vice-chairman of the Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL) and former Congress MP Kuldeep Rai Sharma in connection with “gross irregularities” in granting huge amounts of loans to various people.

“We have received a complaint from the deputy registrar of the Cooperative Societies regarding such irregularities. During our investigation, we have found some shell companies. We are questioning their directors,” Jitendra Kumar Meena, SSP (CID), told PTI.

“We have also found non-performing assets (NPA) cases (amounting to crores of rupees) in the shell companies. All the suspected bank accounts have been frozen and further investigation is underway,” he said.

During its probe, the CID has seized around 50 suspected loan files, and questioned over 40 people, “who are directors of various shell companies and quizzed over 10 ANSCBL officials”, Meena said.

Apart from Sharma, others named in the FIR include former chairman of ANSCB, late Bhagat Singh, its directors and their relatives.

The managing committee of the ANSCB allegedly overlooked recommendations of the loan screening committee as well as CIBIL reports while sanctioning the advances, police sources said.

Meanwhile, MD of ANSCB, K Murugan, recently released a video message, requesting customers to not panic and assured them of the bank's financial stability and security.