Synopsis: The Enforcement Directorate has arrested former UCO Bank CMD Subodh Kumar Goel in a ?6,210.72 crore fraud linked to Concast Steel & Power Ltd. The case involves alleged loan diversion and illegal gratification during Goel’s tenure.
In a major development in the ongoing crackdown on financial irregularities in India’s banking sector, the Enforcement Directorate (ED) has arrested Subodh Kumar Goel, the former Chairman and Managing Director of UCO Bank. The arrest was made at his New Delhi residence in connection with a high-profile bank fraud case involving Concast Steel & Power Ltd (CSPL) and others.
The ED’s action follows an earlier case registered by the Central Bureau of Investigation (CBI), which alleged a massive scam involving the siphoning off and diversion of loan funds amounting to ?6,210.72 crore. The loans were disbursed by a consortium of banks, with UCO Bank being one of the lead lenders during Goel’s tenure.
According to ED officials, Goel played a pivotal role in sanctioning large credit facilities to CSPL, which were later misused. In return, he allegedly received illegal gratification — a key detail that strengthened the agency’s case against him. These funds were diverted through multiple shell companies, leading to substantial financial loss to public sector banks.
The scale of the scam is staggering. The funds were intended for industrial expansion and operations of CSPL but were allegedly funneled into personal accounts, shell entities, and fictitious transactions. The ED stated that forensic audits and trail analysis indicated clear evidence of money laundering and criminal conspiracy.
Sources suggest Goel’s arrest is part of a wider investigation targeting top executives and financiers involved in similar large-scale loan frauds. The ED is now examining Goel’s financial records, assets, and potential overseas links to trace the complete money trail.
Goel will be produced before a special PMLA (Prevention of Money Laundering Act) court, where the ED is expected to seek extended custody to interrogate him further.
This arrest highlights growing concerns over accountability within India's public sector banks and the role of senior officials in facilitating high-value financial crimes. The case is being closely watched by regulators and financial institutions, given its impact on investor confidence and the public banking ecosystem.
Disclaimer: This article is based on current reports and ongoing investigations by the Enforcement Directorate. All accused are presumed innocent until proven guilty in a court of law.
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