The Enforcement Directorate (ED) has launched its first-ever raids in the Union Territory of Andaman and Nicobar Islands on Thursday, targeting a former MP in connection with an alleged cooperative bank loan fraud case.

This investigation pertains to the Andaman and Nicobar State Cooperative Bank (ANSCB) and its vice-chairman, Kuldeep Rai Sharma.

Sharma, a 57-year-old Congress leader, served as an MP for the region from 2019 to 2024. According to sources, officials from the central investigative agency executed searches under the Prevention of Money Laundering Act (PMLA) in Port Blair and nine other locations nearby, as well as two sites in Kolkata.

This marks the first instance of the agency conducting searches in this Union Territory located in the Bay of Bengal. Reports indicate that the agency has uncovered documents suggesting significant irregularities in the loan provisions made by ANSCB.

Sources further revealed that Sharma's involvement is also under scrutiny as part of the ED's investigation. Allegations suggest that a group of approximately 15 entities or companies was formed to benefit Sharma, which fraudulently secured over ₹200 crores in loan facilities from ANSCB.

Documents collected during the raids indicate that various shell companies were granted loans in violation of the bank's established procedures and guidelines. This money laundering case originated from a First Information Report (FIR) filed by the Crime and Economic Offenses Wing of the Andaman and Nicobar Police.