Jun 01, 2025 02:21 PM IST
Police has taken this action based on the suspicions of misuse of loan funds, based on large withdrawals in a short amount of time.
Kuldeep Rai Sharma, a former Congress MP of Andaman and Nicobar Islands, was questioned by the CID over alleged irregularities in sanctioning loans by state cooperative banks and his passport has also been seized, officials said on Sunday.
Earlier, an FIR was lodged against Sharma, who is the vice-chairman of the Andaman and Nicobar State Cooperative Bank Ltd (ANSCBL), according to PTI news agency.
Talking about the investigation, a senior police officer said that the Congress leader has been asked to appear again.
“The CID has seized his passport, as part of our investigation. He has been asked to appear again before the investigating officers whenever required.” Police also said that along with his passport, they have seized original loan files of 65 individuals or firms. This includes former chairman late Bhagat Singh (father of Kuldeep Rai Sharma), ANSCBL directors and their relatives. Now the efforts are underway to call in a forensic audit expert and trace the flow funds from the sanctioned loan accounts to their final utilisation, PTI quoted police as saying.
Police suspects misuse of loan funds
The police further said that they noticed large withdrawals in a short amount of time, which raised their suspicion the funds were being misused or diverted. “Seized documents also suggest manipulation in property valuation certificates,” a senior police officer added.
According to police sources cited in the PTI report, the managing committee of the ANSCB allegedly overlooked recommendations by the loan screening committee as well as CIBIL reports while sanctioning the advances.
Earlier, an FIR was lodged dated May 15 and SSP (CID) Jitendra Kumar Meena said that complaints were received from the deputy registrar of cooperative societies (HQ) regarding “gross irregularities in sanctioning loans to various people by the Andaman and Nicobar State Cooperative Bank.”
There were also allegations that loans was disbursed to some unfit applicants without following the banking norms. In some cases, there were allegations that an unsigned site verification report was submitted by the branch manager during the loan disbursement process to some of the beneficiaries.
(With Inputs from PTI)
