Sri Vijaya Puram, February 10 The Calcutta High Court on Tuesday rejected the bail applications of former Member of Parliament of Andaman and Nicobar Islands, Kuldeep Rai Sharma, and Sanjay Lal, another accused, in connection with a case involving a fraud of Rs 500 crore against a bank.
The case, heard by a Single Bench (CRM-SB) of Justice Apurba Sinha Ray, granted bail to K Murugan, former Managing Director of the Andaman and Nicobar State Cooperative Bank (ANSCBL), on health grounds.
Sharma, who is also the former Chairman of the ANSCBL, and Murugan were arrested on September 17, 2025, while Lal was apprehended a month later by the Enforcement Directorate (ED) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
"After hearing both sides at length, Justice Apurba Sinha Ray rejected the bail applications of ex-Andaman MP Kuldeep Rai Sharma and Sanjay Lal, while granting bail to K Murugan on health grounds," an ED official said.
"They were arrested in connection with a case involving fraud against the ANSCBL, amounting to over Rs. 500 Crore," the official added.
The investigation originated from a First Information Report (FIR) registered on May 15, 2025, by the Crime & Economic Offences Cell, Andaman & Nicobar Police, against bank officials and private individuals. On July 18, the Cell arrested Sharma in connection with the case involving loan irregularities.
The arrest was made following a complaint from the Deputy Registrar of Cooperative Societies, which alleged gross irregularities in the sanctioning of loans to various individuals by the lender.
Later, the ED initiated a parallel investigation and conducted a search operation on the Andaman and Nicobar Islands on July 31, 2025.
The ED's investigation has revealed a widespread conspiracy in which loans worth over Rs 500 crore were fraudulently sanctioned through more than 100 accounts opened in the names of shell companies and firms.
According to the ED findings, approximately Rs 230 crore was allegedly siphoned off for the exclusive benefit of Kuldeep Rai Sharma and his close associates, including the Managing Director and loan officer of the ANSCBL.