UCO Bank Fraud Case: Subodh Kumar Goel Arrested

In a significant development, the Enforcement Directorate (ED) arrested Subodh Kumar Goel, former Chairman and Managing Director of UCO Bank, in connection with a massive ₹6,210 crore bank fraud case involving Concast Steel and Power Limited (CSPL).

Key Takeaways

• Subodh Kumar Goel was arrested on May 16, 2025, in Delhi under charges linked to the PMLA.
• The fraud involves diversion and siphoning of ₹6,210 crore in bank loans sanctioned to CSPL during Goel’s tenure.
• Goel allegedly received illegal gratifications through shell companies, luxury assets, and properties.

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Background of the Case

The ED’s investigation stems from an FIR filed by the CBI in Kolkata, which alleged large-scale misappropriation of funds sanctioned by UCO Bank to CSPL. 

The funds were meant for legitimate business purposes but were allegedly diverted for personal gains.

The Prevention of Money Laundering Act (PMLA), 2002, has been invoked in the case, with evidence suggesting a deep-rooted conspiracy involving structured layering of money, shell companies, and accommodation entries.

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Role of Subodh Kumar Goel

During his tenure as CMD, Goel reportedly approved substantial credit facilities to CSPL. In return, he is alleged to have received illegal payments, including:

• Cash transfers
• Immovable property acquisitions
• Luxury goods
• Hotel stays and travel bookings

These illicit benefits were routed through front companies, dummy individuals, and even family members, masking the true origin of funds.

Investigation Timeline and Legal Action

• April 22, 2025: ED raided Goel’s residence and recovered incriminating documents.
• May 16, 2025: Goel was arrested from his Delhi residence.
• May 17, 2025: He was produced in Kolkata’s PMLA Special Court and remanded to ED custody till May 21.

The ED has already attached assets worth ₹510 crore belonging to CSPL and its main promoter, Sanjay Sureka, who was previously arrested in December 2024 and remains in judicial custody.

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Larger Implications

The arrest of a former bank chairman in such a high-value scam highlights serious lapses in institutional safeguards and regulatory oversight. The case also underscores the growing role of ED in investigating banking frauds linked to corporate and political entities.

FAQs

What is the total value of the UCO Bank fraud case?

The fraud is estimated at ₹6,210.72 crore, excluding interest, involving loan diversions by Concast Steel and Power Limited (CSPL).

Why was Subodh Kumar Goel arrested?

He was arrested for allegedly facilitating the fraudulent loans and accepting illegal gratification during his time as CMD of UCO Bank.

What are the charges under which the ED is investigating?

The investigation is being conducted under the Prevention of Money Laundering Act (PMLA), 2002, based on a CBI FIR and findings of financial misappropriation.