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Subodh Kumar Goel, former CMD of UCO Bank, has been arrested in connection with a bank fraud case against Concast Steel & Power Ltd (CSPL) and others.
The ED investigation has revealed that during Goel’s tenure as CMD of UCO Bank, large credit facilities were sanctioned to CSPL, and, in turn, he got illegal gratification.
The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, the former chairman and managing director of UCO Bank, from his residence in New Delhi. He was arrested on May 16 in connection with a bank fraud case against Concast Steel & Power Ltd (CSPL) and others.
He was produced before the special Prevention of Money Laundering Act (PMLA) court in Kolkata on May 17 which sent him to ED custody till May 21, the federal probe agency said in a statement.
The ED had raided the premises of Goel and some others in April as part of this investigation.
The allegation against him is related to CSPL and subsequent large-scale diversion and siphoning off of loan funds amounting to Rs 6,210.72 crore.
The money laundering case stems from an FIR registered by the Central Bureau of Investigation (CBI) related to the sanction of credit facilities to CSPL and subsequent large-scale “diversion” and “siphoning” of loans amounting to Rs 6,210.72 crore (principle amount without interest).
The ED investigation said that during Goel’s tenure as CMD of UCO Bank, large credit facilities were “sanctioned” to CSPL which were subsequently “diverted” and “siphoned off” by the borrower group. In turn, it alleged, Goel received “substantial illegal gratification” from CSPL.
“The illegal gratification was layered and channelled through various entities to give a facade of legitimacy. Investigation revealed that Goel received cash, immovable properties, luxury goods, hotel booking etc routed through a web of shell companies, dummy persons and through family members to conceal the criminal origin of the money,” the ED said.
The agency said several properties acquired through shell or dummy companies have been identified.
These shell entities are “beneficially owned or controlled” by Goel and his family members, it claimed.
“The source of funds of these entities is linked to CSPL. Evidence gathered so far also shows use of accommodation entries and structured layering through front companies for systematic settlement of kickbacks,” the ED said.
Sanjay Sureka, the main promoter of CSPL, was arrested by the ED in December, 2024 and a chargesheet was filed before the Kolkata court in February this year.
The agency had attached assets worth Rs 510 crore of Sureka and CSPL as part of two orders issued under the PMLA.
Further investigation is underway.
(With Inputs from PTI)
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