ED Arrests Former UCO Bank CMD Subodh Kumar Goel
ED finds illegal kickbacks, assets linked to Goel; probe ongoing into massive bank fraud
Mumbai: The Kolkata zonal office of the Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former chairman and managing director (CMD) of UCO Bank, on money laundering charges in connection with a massive Rs 6210 crore bank fraud case linked to Concast Steel & Power Ltd (CSPL). The arrest was made on May 16, 2025 from Goel’s residence in New Delhi under provisions of the Prevention of Money Laundering Act 2002.
In a statement, the ED said that its investigation revealed that during his tenure as CMD of UCO Bank, Goel sanctioned large credit facilities to CSPL from the bank, which were subsequently diverted and siphoned off by the borrower group.
“In turn, Subodh Kumar Goel received substantial illegal gratification from CSPL. The illegal gratification was layered and channelled through various entities to give a facade of legitimacy. Investigation revealed that Goel received cash, immovable properties, luxury goods , hotel bookings, etc, routed through a web of shell companies, dummy persons and through family members to conceal the criminal origin of the money,” the ED statement said.
“These shell entities are beneficially owned or controlled by Subodh Kumar Goel and his family members. The source of funds of these entities is linked to CSPL. Evidence gathered so far also shows use of accommodation entries and structured layering through front companies for systematic settlement of kickbacks,” the statement added.
Goel was produced before the special Prevention of Money Laundering Act (PMLA) court in Kolkata on May 17 which sent him to ED custody till May 21, the federal probe agency said in a statement.
Earlier searches conducted at Goel’s residence and other related locations on April 22, 2025 led to the seizure of what the ED describes as 'incriminating materials', including documents detailing illegal kickbacks and asset acquisitions.
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 (principle amount without interest).
CSPL had availed credit facilities including term loans, cash credit (CC), and letters of credit (LC) from a consortium of 11 banks and five financial institutions, with a total default of Rs 6,210 crore, as the company loan turned into a non-performing asset (NPA) on September 30, 2016. Investigations revealed that funds from these LCs were systematically diverted to accounts of group companies and personal accounts.
CSPL promoted by Sanjay Sureka and headquartered in Kolkata, operated integrated manufacturing facilities in West Bengal, Odisha and Andhra Pradesh. The company specialises in producing sponge iron, pig iron, mild steel, rolled products, TMT bars, angles, channels and ferroalloys. Sureka was arrested by the ED in December, 2024 and a chargesheet was filed before the Kolkata court in February this year.
The agency had attached assets worth Rs 510 crore of Sureka and CSPL as part of two orders issued under the PMLA.
