ED arrests former UCO Bank chairman Subodh Goel in Rs 6,210 crore fraud case

The Directorate of Enforcement (ED) arrested Subodh Kumar Goel, the former Chairman and Managing Director of UCO Bank, on May 16 from his residence in New Delhi. This arrest is part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002, related to a massive financial fraud amounting to Rs 6,210 crore. The fraud involves M/s Concast Steel & Power Ltd. (CSPL) and other entities.

The case centers around allegations of irregularities in the sanctioning of credit facilities by UCO Bank to CSPL. The probe found that the sanctioned loans were subsequently diverted and siphoned off, causing significant financial damage. The amount involved in this fraudulent activity totals Rs 6,210.72 crore, which refers to the principal loan amount excluding interest.

On May 17, Subodh Goel was produced before the Special Court (PMLA) in Kolkata. The court granted the Enforcement Directorate custody of Goel until May 21 to facilitate further interrogation and investigation.

The ED's investigation was launched based on an FIR filed by the Central Bureau of Investigation (CBI), Kolkata. The FIR highlighted the irregularities and financial misconduct involving the credit sanction and misuse of loan funds by CSPL. The case represents one of the largest frauds involving banking institutions and corporate entities in recent years, showcasing the vulnerabilities in the financial oversight and regulatory framework.

The investigation continues as authorities seek to uncover more details about the extent of the fraud, other individuals or entities involved, and the methods used to divert the substantial loan amount. The Enforcement Directorate is working closely with other law enforcement agencies to ensure a thorough probe and bring all responsible parties to justice.

This case also underscores the importance of stringent financial controls and accountability within banking operations, particularly regarding large corporate loans. The impact of such frauds is far-reaching, affecting not only the financial institution but also the broader economy, investor confidence, and the public trust in banking systems.

The arrest of Subodh Kumar Goel marks a significant step in the ongoing crackdown on financial crimes in India, reflecting the government's commitment to tackling money laundering and corruption. As the investigation progresses, further developments and actions are expected to be announced by the authorities.

In summary, the ED’s arrest of the former UCO Bank chief is linked to a Rs 6,210 crore fraud case involving irregularities in credit sanctioning and diversion of loan funds connected to Concast Steel & Power Ltd. The case is under investigation based on a CBI FIR, with Goel currently in custody for further questioning as authorities aim to unravel the full extent of this large-scale financial crime.