New Delhi [India], May 19 (ANI): 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 an ongoing investigation against Concast Steel and Power Ltd (CSPL) and others in a bank fraud case, the agency said on Monday.
ED’s Kolkata Zonal office arrested Subodh on May 16 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before a special PMLA court in Kolkata on May 17 and the court has granted the ED custody of Subodh till May 21.
ED initiated investigation on the basis of the First Informatics Report (FIR) registered by the Central Bureau of Investigation (CBI) relating to the sanction of credit facilities to CSPL and subsequent large-scale diversion and siphoning of loan funds amounting to Rs 6210.72 crore (principal amount without interest).
ED investigation revealed that during the tenure of Subodh as CMD of UCO Bank, large credit facilities were sanctioned to CSPL by UCO Bank, which were subsequently diverted and siphoned off by the borrower group.
In turn, ED said, Subodh received substantial illegal gratifications from CSPL. “The illegal gratification was layered and channelled through various entities to give a facade of legitimacy. 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.”
“Several properties acquired through shell companies have been identified. These shell entities are beneficially owned or controlled by Subodh Kumar Goel and his family members. Source of fund 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,” said the ED.
Searches were conducted on April 22 at the residential premises of Subodh and other related persons.
ED claims that various incriminating materials were seized which contain details of various illegal gratifications received by Subodh.
Earlier, during the investigation of CSPL, assets worth approximately 510 crore in the form of immovable properties related to Sanjay Surekha and CSPL have been provisionally attached vide 2 separate Provisional Attachment Orders. Searches were also conducted at several locations across many cities, which have led to the recovery of crucial incriminating materials. The main promoter of CSPL, Sanjay Sureka, was arrested on December 18, 2024 and continues to be in Judicial Custody. Further, a Prosecution Complaint (PC) was filed before the Court on February 15. (ANI)
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