 "Ex-Uco bank chief Subodh Goel arrested in Rs 6,210 cr loan fraud case")
The Enforcement Directorate (ED) has arrested the former chairman and managing director (CMD) of Uco Bank, Subodh Kumar Goel, in connection with a Rs 6210.72 bank loan fraud case.
Goel was produced before the special Prevention of Money Laundering Act (PMLA) court in Kolkata on May 17, which granted the ED his custody till May 21, according to a statement issued by the ED. Goel was held from his residence in New Delhi on May 16.
The ED investigation revealed that during Goel’s tenure as the bank’s CMD, large credit facilities, amounting to Rs 6210.72 crore (principal amount without interest), were sanctioned to Concast Steel & Power Ltd. (CSPL) by the bank, which were subsequently diverted and siphoned off by the borrower group. In turn, 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,” the ED said in its statement.
The ED had initiated investigation on the basis of an FIR registered by the central bureau of investigation (CBI), banking securities and fraud branch (BSFB), Kolkata, relating to the sanction of credit facilities to CSPL and subsequent large-scale diversion and siphoning of loan funds.
ED further said that the several properties acquired by Goel through shell companies have been identified.
“These shell entities are beneficially owned or controlled by Subodh Kumar Goel and his family members. 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 statement added.
The ED conducted searches on April 22 at the residential premises of Goel and other persons related to the case. Various incriminating materials were seized, which contain details of illegal gratifications received by Goel.
Earlier, during the investigation of CSPL, assets worth approximately Rs 510 crore in the form of immovable properties related to CSPL and Sanjay Surekha, the main promoter of CSPL, have been provisionally attached vide two separate Provisional Attachment Orders.
Surekha was arrested on December 18, 2024 and continues to be in judicial custody. Further, a prosecution complaint was filed against Surekha before a sessions court in Kolkata on February 15.