The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former Chairman and Managing Director of UCO Bank, in connection with a loan fraud involving Rs 6,210.72 crore sanctioned to Concast Steel and Power Ltd. (CSPL). Goel was arrested from his Delhi residence last week and produced before the PMLA court in Kolkata on May 17, which remanded him to ED custody till May 21.
The case stems from a CBI FIR filed by the BSFB, Kolkata, alleging fraudulent sanction and diversion of large-scale credit facilities extended to CSPL. The ED, in a statement, claimed that Goel approved substantial loans during his tenure, which were siphoned off by CSPL and in return, he allegedly received illegal gratifications.
The ED alleged that Goel’s bribe included cash, immovable properties, luxury goods and hotel bookings, all routed through a complex network of shell companies, dummy individuals and family members to hide the illicit origins of the money. These transactions were part of a larger scheme to legitimise the bribe through layering and money laundering techniques.
Investigators have reportedly identified several properties owned by shell entities allegedly controlled by Goel and his family. The funding of these entities has been traced back to CSPL, and search operations on April 22 at Goel’s residence yielded incriminating evidence, according to the ED.
In earlier action against CSPL, assets worth Rs 510 crore linked to Sanjay Sureka, the company’s main promoter, were provisionally attached. Sureka was arrested on December 18, 2023 and remains in judicial custody.