Mumbai: The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former Chairman and Managing Director of UCO Bank, from his residence in New Delhi in connection with a probe against Concast Steel & Power Ltd. (CSPL) and others in an alleged bank fraud case. Goel was taken into custody by the ED’s Kolkata Zonal Office on May 16 under the Prevention of Money Laundering Act (PMLA), 2002, the agency said on Monday.

He was produced before a special PMLA court in Kolkata on May 17, which remanded him to ED custody until May 21.

The ED’s investigation is based on an FIR registered by the Central Bureau of Investigation (CBI), Bank Securities and Fraud Branch (BSFB), Kolkata, concerning the sanction of credit facilities to Concast Steel & Power Ltd.

(CSPL) and the subsequent large-scale diversion and siphoning of loan funds amounting to Rs 6,210.72 crore (principal amount excluding interest).

According to the ED, the credit facilities in question were approved during Goel’s period “ED investigation revealed that during the tenure of Goel as CMD of UCO Bank, large credit facilities were sanctioned to CSPL by the bank, which were subsequently diverted and siphoned off by the borrower group. In return, Subodh Kumar Goel received substantial illegal gratifications from CSPL,” the agency stated.

The agency said that Goel received illicit benefits in the form of cash, immovable properties, luxury goods, and hotel bookings. These were allegedly routed through a network of shell firms, proxies, and family members to obscure the illicit origin of the funds.

As per the ED statement, several properties acquired through shell or dummy companies “beneficially owned or controlled” by Goel and his family members have been identified.

"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 ED said.

On April 22, ED conducted searches at the residential premises of Subodh Kumar Goel and other individuals connected to the case. During the operation, officials seized various incriminating materials that allegedly detail illegal gratifications received by Goel.

The ED had earlier arrested Sanjay Sureka, the principal promoter of Concast Steel & Power Ltd.

(CSPL), in December 2024. Subsequently, a charge sheet was filed in February before a special court in Kolkata. Additionally, immovable properties worth Rs 510 crore linked to Sureka and CSPL have been attached under two separate orders issued under the Prevention of Money Laundering Act (PMLA).