Former UCO Bank CMD Subodh Kumar Goel Arrested in ₹6,200 Crore Loan Fraud Case
The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former Chairman and Managing Director of UCO Bank, on money laundering charges. His arrest is linked to an alleged bank loan fraud exceeding ₹6,200 crore involving Kolkata-based Concast Steel and Power Limited. Goel was taken into custody from his New Delhi residence on May 16 as part of the ongoing investigation.
Unpacked:
According to the Enforcement Directorate, Subodh Kumar Goel, as CMD of UCO Bank, sanctioned large credit facilities to Concast Steel and Power Limited. The funds were then allegedly diverted and siphoned off by the borrower group, and Goel is accused of receiving substantial illegal gratifications that were layered through various entities to disguise their origin.
Concast Steel and Power Limited (CSPL) is a Kolkata-based company involved in steel production and power generation. The current investigation links CSPL to large-scale bank loan fraud and diversion of funds, but the summary does not detail a longstanding history of financial irregularities, focusing instead on the present ₹6,200 crore fraud case.
After his arrest under the Prevention of Money Laundering Act (PMLA), Goel was produced before a special court in Kolkata, which sent him to ED custody until May 21. He will likely face further interrogation, and formal charges may follow pending the ongoing investigation.
Yes, earlier in his career, Goel was credited with detecting securities scams, including the Harshad Mehta and Ketan Parikh cases, while serving as Chief Vigilance Officer at Bank of India. His efforts in exposing financial frauds were recognized by the Joint Parliamentary Committee.