New Delhi [India], July 31 : The Enforcement Directorate (ED) on Thursday conducted its first-ever search operation in the Union Territory of Andaman and Nicobar Islands on Thursday in connection with an alleged Rs 200 crore loan fraud case involving the Andaman Nicobar State Cooperative Bank (ANSCB).
The raids were carried out at nine locations in and around Port Blair and two in Kolkata as part of the investigation into alleged irregularities in loan and overdraft disbursals by ANSCB.
As per officials privy to the development, incriminating documents recovered during the operation point to widespread violations in the sanctioning of loans and overdraft facilities.
"Evidence collected so far indicates that loan facilities were extended to various shell companies and firms by ignoring the laid down procedures and guidelines of the bank," the officials said.
"Searches have also revealed that a group of around 15 entities and companies were created by suspects for the benefit of an ex-MP of Andaman and Nicobar Islands, and loan facilities amounting to more than Rs 200 crores were fraudulently taken by these entities from the ANSCB."
It has also been revealed that a substantial portion of these loans were withdrawn in cash and have been paid to the beneficiaries including the ex-MP, the officials said requesting anonymity.
ED initiated an investigation in the case on the basis of the First Information Report (FIR) registered by the Crime and Economic Offences, Andaman Nicobar Police against various private persons and officials of the bank.