Ex-UCO Bank: In an alleged bank loan fraud case involving over Rs 6,200 crore connected to a Kolkata-based company, the Enforcement Directorate (ED) announced Monday that it has arrested former UCO Bank CMD Subodh Kumar Goel on money laundering allegations.

Money Laundering Case: 

In the case against Concast Steel and Power Ltd (CSPL) and others, the authorities took Goel into custody from his home on May 16. The federal probe agency stated that the court placed him under ED custody until May 21 after bringing him before a special Prevention of Money Laundering Act (PMLA) court in Kolkata on May 17.

As part of the investigation, the ED raided Goel’s and several others’ homes in April. The money laundering case stems from a CBI FIR regarding the approval of credit facilities to CSPL and the subsequent diversion and siphoning of loans totaling Rs 6,210.72 crore (principal amount without interest).

The ED claims that large loan facilities were sanctioned to CSPL while Goel served as CMD of UCO Bank. The borrower group later diverted and siphoned off the funds. In return, CSPL allegedly gave Goel substantial illegal gratification, which the investigation uncovered as being layered and channeled through various entities to create a facade of legitimacy.

Case Investigation:

Investigation revealed that Goel received cash, immovable properties, luxury goods, hotel bookings, and more, routed through a web of shell companies, dummy persons, and family members to conceal the criminal origin of the money,” stated the Enforcement Director.

The ED could not reach Goel or his attorney for comment on the accusations against him. According to the agency, investigators identified several properties purchased by shell or dummy companies. Goel and his family either own or control these shell companies, the agency said.

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CSPL promoter:

CSPL connects to the funding source of these organizations. The ED stated that the evidence gathered so far also shows the systematic payment of kickbacks through accommodation entries and organized layering via front businesses.

The ED took Sanjay Sureka, the primary CSPL promoter, into custody in December 2024. In February of this year, the ED submitted a chargesheet to the Kolkata court. As part of two orders under the PMLA, the agency attached Sureka’s and CSPL’s assets worth Rs 510 crore.

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