ED Arrests Former UCO Bank CMD in Multi-Crore CSPL Fraud Case

In a significant development, Subodh Kumar Goel, the former Chairman and Managing Director of UCO Bank, was apprehended by the Enforcement Directorate (ED) from his New Delhi residence. The arrest, part of an ongoing probe into Concast Steel and Power Ltd (CSPL) and related entities, underscores one of the nation's notable bank fraud investigations.

The ED's Kolkata Zonal Office detained Goel on May 16 under the Prevention of Money Laundering Act (PMLA), 2002. He was subsequently presented to a special PMLA court in Kolkata on May 17, which has extended Goel's custody under the ED's jurisdiction until May 21.

The case originates from a First Informatics Report by the Central Bureau of Investigation (CBI), which highlights the sanction of extensive credit facilities to CSPL during Goel's tenure. These loans, totaling a principal amount of Rs 6210.72 crore, were allegedly diverted by CSPL and routed through complex financial tactics, benefiting Goel and his associates illicitly.

The ED's investigation revealed that Goel benefited from these transactions through illegal gratifications disguised via various entities. Among the benefits were substantial cash amounts, luxury goods, and real estate, acquired through layers of shell companies and dummy accounts, effectively disguising the original source of the funds.

Authorities conducted searches on April 22 at Goel's residence and other premises, seizing incriminating materials documenting these illegal transactions. Prior investigations linked to CSPL have already seen assets worth around Rs 510 crore provisionally attached, with continued efforts to identify and seize further involved properties.

The probe also saw the arrest of Sanjay Sureka, CSPL's principal promoter, in December 2024, who remains in judicial custody. Amidst ongoing legal proceedings, a Prosecution Complaint was filed in court on February 15, marking further strides in the comprehensive investigation. (ANI)

(With inputs from agencies.)