NEW DELHI: The Enforcement Directorate (ED) on Saturday arrested Subodh Goel, the former Chairman and Managing Director of UCO Bank, in connection with a massive ₹6,200 crore loan fraud case. Goel, who was appointed during the UPA regime, was taken into custody from his residence in Delhi and later produced before a special court in Kolkata, which remanded him to ED custody until Wednesday.
According to the ED, Goel allegedly accepted bribes in exchange for approving large credit facilities to Concast Steel & Power Ltd (CSPL) during his tenure. These funds were subsequently diverted and siphoned off by the borrower. In return, Goel is accused of receiving substantial illegal payments.
“Investigations have revealed that during Goel’s tenure, large loans were sanctioned to CSPL, which misused the funds. In exchange, Goel received illegal gratification in various forms,” the agency said in a statement.
The ED claims the bribes were funneled through shell companies, dummy individuals, and even family members, to conceal the source and nature of the funds. Goel allegedly received cash, luxury items, real estate, and other assets, all disguised as legitimate transactions.
Earlier, the ED had attached assets worth ₹510 crore belonging to CSPL and linked to its promoter Sanjay Surekha, who was arrested in December last year and remains in judicial custody. A chargesheet in the case was filed on February 15.
The agency has called the fraud part of a larger pattern of financial misconduct, highlighting the use of layered transactions to mask corruption at the highest levels of the banking system.
