The Enforcement Directorate (ED) has arrested former UCO Bank chairman and managing director Subodh Kumar Goel in connection with a money laundering investigation linked to a massive bank fraud case involving Concast Steel and Power Ltd (CSPL). The arrest was made in Delhi on May 16 under provisions of the Prevention of Money Laundering Act (PMLA), the agency said in a statement on Monday.
Goel was produced before a special PMLA court in Kolkata on May 17 and remanded to ED custody till May 21.
The money laundering case originates from a Central Bureau of Investigation (CBI) FIR that alleged the sanction of credit facilities to CSPL, followed by a large-scale diversion and siphoning off of funds. According to the ED, loans totaling ₹6,210.72 crore (excluding interest) were misused, with significant portions being laundered.
The ED’s investigation revealed that Goel, during his tenure as CMD of UCO Bank, played a key role in sanctioning large credit facilities to CSPL. These loans were subsequently diverted by the borrower group, and in return, Goel allegedly received substantial illegal gratification. These illicit benefits were routed through a complex web of shell companies and dummy individuals to disguise their origins.
The agency stated that Goel received bribes in the form of cash, luxury goods, hotel bookings, and immovable properties. Many of these assets were acquired using front companies reportedly controlled by Goel and his family members. “The source of funds of these entities is linked to CSPL,” the ED said, emphasizing that accommodation entries and structured layering were used to launder the money.
A raid conducted at Goel’s residence on April 22 led to the seizure of incriminating evidence, including documents detailing various illegal gratifications.
Earlier in the investigation, the ED had provisionally attached assets worth approximately ₹510 crore linked to CSPL and its main promoter, Sanjay Sureka. Sureka was arrested on December 18, 2023, and remains in judicial custody.
A charge sheet was filed by the ED in February 2024, and multiple searches have been conducted across cities, uncovering crucial materials related to the fraud.
The investigation continues as the ED tracks further links between Goel, CSPL, and the financial networks used in the alleged laundering scheme.
Sources By Agencies
