Ex-UCO Bank CMD Arrested in Massive Bank Loan Fraud Case

The Enforcement Directorate has arrested Subodh Kumar Goel, former CMD of UCO Bank, on charges of money laundering in connection with a bank loan fraud involving over Rs 6,200 crore tied to Concast Steel and Power Ltd. Goel allegedly received illegal benefits during his tenure, which were laundered through shell companies.

In a major development, the Enforcement Directorate (ED) has apprehended Subodh Kumar Goel, the former Chairman and Managing Director (CMD) of UCO Bank, for his alleged involvement in a substantial bank loan fraud case exceeding Rs 6,200 crore. The case pertains to a Kolkata-based company, Concast Steel and Power Ltd (CSPL).

Goel was detained from his residence on May 16 and presented before the special Prevention of Money Laundering Act (PMLA) court in Kolkata the following day. The court has remanded him to ED custody until May 21. The charges stem from a CBI FIR concerning credit facilities granted to CSPL, which were reportedly diverted and siphoned off.

ED's investigation has uncovered that Goel sanctioned large credit facilities to CSPL, allegedly receiving substantial illegal gratuities in return. These were concealed through a network of shell companies and assets. The assets of CSPL and its main promoter, Sanjay Sureka, worth Rs 510 crore, have been attached by the ED.

(With inputs from agencies.)