ED Arrests Former UCO Bank CMD in Massive Rs 6,210 Crore Loan Scam Allegedly Linked to Concast Steel

The Directorate of Enforcement (ED) has arrested the former Chairman and Managing Director of UCO Bank, from his New Delhi residence on Monday due to a bank fraud investigation involving Concast Steel & Power Ltd (CSPL) and others.

What Is The Case?

Subodh Kumar Goel, who is the former Chairman and Managing Director of UCO Bank has been arrested under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, against Concast Steel & Power Ltd and others in a bank fraud case, the ED said in an official statement.

The Kolkata Special Court has been granted the custody of Goel till May 21, 2025.

ED initiated investigation on the basis of FIR registered by the CBI, BSFB, Kolkata, relating to the sanction of credit facilities to CSPL and subsequent large-scale diversion and siphoning of loan funds amounting to Rs 6,210.72 crore (principle amount without interest).

According to the investigation led by ED, it was found during Goel's tenure as CMD of UCO Bank, large credit facilities were sanctioned to CSPL by UCO Bank, which were eventually diverted and siphoned off by the borrower group, the ED said.

"In turn, Subodh Kumar Goel received substantial illegal gratifications 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. Several properties acquired through shell companies have been identified," it added in its statement.

Further, it was found out that these shell companies were entities which were either beneficially owned or controlled by Subodh Kumar Goel and his family members.

Additionally, the source of fund for these entities is linked to CSPL and the evidence that has been gathered so far also shows "the use of accommodation entities and structured layering through front companies for systematic settlement of kickbacks," it added.

What Was The Evidence?

On April 22, searches were conducted in Subodh Kumar Goel's as well as other related persons' residences and several incriminating materials containing details of various illegal gratifications received by Goel, were seized.

Previously, during the investigation of CSPL, assets amounting to approximately Rs 510 crore in the form of immovable properties related to Sanjay Surekha and CSPL have been provisionally attached vide 2 separate Provisional Attachment Orders.

Further searches have led to the recovery of more incriminating materials.

Sanjay Surekha was arrested on December 18, 2024 and continues to be in judicial custody and further investigation is still under progress.

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