In a significant development shaking India’s banking sector, the Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former Chairman and Managing Director (CMD) of UCO Bank, in connection with a colossal Rs 6.21 billion loan fraud. The scam centers around fraudulent loans sanctioned to Concast Steel and Power Ltd. (CSPL), a Kolkata-based company, during Goel’s tenure.
The ED’s investigation, initiated following a Central Bureau of Investigation (CBI) FIR, revealed that Goel approved substantial credit facilities to CSPL, which were subsequently diverted and siphoned off by the borrower group. In return, Goel allegedly received significant illegal gratifications, including cash, immovable properties, luxury goods, and hotel bookings. These illicit benefits were routed through a complex network of shell companies, dummy individuals, and family members to conceal the criminal origin of the funds.
On May 16, 2025, ED officials arrested Goel from his residence in New Delhi. He was produced before a special Prevention of Money Laundering Act (PMLA) court in Kolkata on May 17, which granted ED custody until May 21. The ED has identified properties worth Rs 750 million associated with Goel, allegedly acquired through bribes received for sanctioning the fraudulent loans.
The investigation also uncovered evidence of accommodation entries and structured layering through front companies for systematic settlement of kickbacks. Several properties acquired through shell companies—beneficially owned or controlled by Goel and his family—have been identified, with the source of funds linked directly to CSPL.
In December 2024, the ED arrested Sanjay Sureka, the principal promoter of CSPL, and filed a chargesheet in February 2025. Assets worth Rs 5.1 billion belonging to Sureka and CSPL have been attached under the PMLA.
This case underscores the vulnerabilities within public sector banks and highlights the need for stringent oversight mechanisms to prevent such large-scale financial frauds.
