New Delhi: Subodh Kumar Goyal, former Chairman and Managing Director (CMD) of UCO Bank, has been arrested by the Enforcement Directorate (ED) in a major bank fraud case. The investigating agency alleges that Goyal facilitated a ₹6,210 crore loan to a private company, disregarding regulations, with the funds subsequently misused through fraudulent activities.
What is the Case About?
According to the ED, Goyal, during his tenure, facilitated a substantial loan to Concast Steel & Power Ltd. (CSPL), a Kolkata-based company. Instead of utilizing the funds for business expansion, the company transferred the money to various accounts and entities.
The investigation revealed that Goyal received cash, property, expensive gifts, hotel stays, and other amenities as commissions. These transactions were meticulously structured to avoid immediate suspicion. A complex network involving shell companies and fictitious names was used for these transactions.
How Did the Investigation Begin?
The scandal originated with an FIR filed by the CBI. Subsequently, the ED launched an independent investigation. Raids were conducted on the premises of Goyal and his associates in April 2025. He was finally arrested from his Delhi residence on May 16, 2025.
On May 17, Goyal was presented before the PMLA court in Kolkata, and remanded to ED custody until May 21.
Network for Concealing Funds
The ED report indicates that the scam extended beyond merely sanctioning the loan. The benefits Goyal received were channeled through shell companies and fictitious identities. Properties were purchased through these companies and later registered in the names of Goyal and his family members.
Layering, a technique involving multiple sequential transactions to obscure the true beneficiary, was employed. This method is a key tool in money laundering.
Company Previously Under Scrutiny
This is not the first time CSPL has come under the scanner of investigating agencies. In December 2024, the company's promoter, Sanjay Sureka, was also arrested by the ED. A chargesheet against him was filed in February 2025.
To date, the ED has attached assets worth ₹510 crore linked to Sureka and his companies.
What Might Happen Next?
The investigating agency believes this scam may be part of a larger network. Further arrests are anticipated. The ED is currently tracing the transaction network and identifying other beneficiaries.
Lessons for the Public
This case underscores the crucial need for transparency and accountability in banking and financial systems. The public and investors need to understand the importance of monitoring the operations of banks and financial institutions, regardless of their size.
Remain vigilant, stay informed, and seek expert advice before making any financial decisions.
