ED arrests ex-UCO Bank chairman Subodh Goel in ₹6,210 Cr loan fraud

The Enforcement Directorate (ED) has arrested the former chairman and managing director (CMD) of UCO Bank, Subodh Kumar Goel, on the Rs 6210.72 bank loan fraud case.

About the bank loan fraud

 The former bank chief 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, as stated by the ED. He was held at his residence in New Delhi on May 16.

The money laundering case stems from a CBI FIR 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 (principal amount without interest). 

The ED claimed that during the tenure of Goel as the 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. [Source: Telegraph India]

"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.

Goel or his lawyer could not be contacted for a response to the allegations made by the ED against him.

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ED reveals fraudulence  by ex-chief and promoter

The investigation revealed that several properties had been acquired through shell or dummy companies.

These shell entities are "beneficially owned or controlled" by Goel and his family members, as stated by ED.

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.

ED had attached assets worth Rs 510 crore of Sureka and CSPL as part of two orders issued under the PMLA.

The agency had raided the premises of Goel and some others in April as part of this investigation.

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