UCO Bank ex-chairman Subodh Goel Arrested by ED

The Enforcement Directorate (ED) on Monday said it has arrested former UCO Bank CMD Subodh Kumar Goel on money laundering charges in an alleged bank loan fraud case of more than Rs 6,200 crore linked to a Kolkata-based company.

Goel was arrested from his residence in New Delhi on May 16 in the case being probed against Concast Steel and Power Ltd (CSPL) and others. He was produced before the special Prevention of Money Laundering Act (PMLA) court in Kolkata on May 17 which sent him to Enforcement Directorate custody till May 21, the federal probe agency said in a statement.

The Enforcement Directorate had raided the premises of Goel and some others in April as part of this investigation. The money laundering case stems from a CBI FIR related to the sanction of credit facilities to CSPL and subsequent large-scale "diversion" and "siphoning" of loans amounting to Rs 6,210.72 crore (principal amount without interest).

The Enforcement Directorate claimed that during the tenure of Goel as the CMD of UCO Bank, large credit facilities were "sanctioned" to CSPL which were subsequently "diverted" and "siphoned off" by the borrower group. In turn, it alleged, Goel received "substantial illegal gratification" from CSPL.

"Investigation revealed that Goel received cash, immovable properties, luxury goods, hotel booking, etc routed through a web of shell companies, dummy persons, and through family members to conceal the criminal origin of the money," the Enforcement Directorate said.

Goel or his lawyer could not be contacted for a response on the allegations made by the Enforcement Directorate against him.