Ex-Andaman MP grilled, passport seized over 'irregularities' in bank loan sanctions

Port Blair: Former Congress MP of Andaman and Nicobar Islands, Kuldeep Rai Sharma, was questioned by the CID over alleged irregularities in sanctioning loans by a state cooperative bank, and his passport has 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).

“The CID has seized his passport, as part of our investigation. He has been asked to appear again before the investigating officers whenever required,” a senior police officer said. “We have also seized the original loan files of 65 individuals/firms, including former chairman late Bhagat Singh (father of Kuldeep Rai Sharma), ANSCBL directors and their relatives...” he said. The officer said efforts are underway to rope in a forensic audit expert to trace the flow of funds from the sanctioned loan accounts to the final utilisation. “We have noticed large withdrawals in a short duration, which is raising suspicions that the funds were misused or diverted. Seized documents also suggest manipulation in property valuation certificates,” he said. 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.