The Kolkata zonal office of the directorate of enforcement (ED) has arrested Subodh Kumar Goel, former chairman and managing director (CMD) of UCO Bank, in connection with a multi-crore bank fraud case linked to Concast Steel & Power Ltd (CSPL). The arrest was made on 16 May 2025 from Mr Goel’s residence in New Delhi under provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Mr Goel was produced before the special court (PMLA), Kolkata, on 17 May which granted ED custody until 21 May 2025 for further interrogation.
The case stems from a first information report (FIR) filed by central bureau of investigation (CBI) which alleged irregular sanctioning of massive credit facilities to CSPL and the subsequent diversion and siphoning of loan funds. Concast Steel and Power group had availed credit facilities from 11 public sector banks (PSBs) and five financial institutions, with a total default of Rs6,210 crore, as the company loan turned into a non-performing asset (NPA) on 30 September 2016.
According to ED, during Mr Goel’s tenure as the head of UCO Bank, large-scale loans were sanctioned to CSPL which were later misappropriated by the borrower group. Investigators claim that Mr Goel received 'substantial illegal gratifications' in return. These alleged bribes were layered and disguised through shell entities, dummy individuals and family members in a complex money trail designed to hide the illicit origin of the funds.
ED’s probe has uncovered evidence that Mr Goel received payments in the form of cash, real estate assets, luxury goods, hotel stays and other benefits routed through shell companies. Many of these entities are reportedly beneficially owned or controlled by Mr Goel and his close family members and their funding sources have been traced back to CSPL.
Earlier searches conducted at Mr Goel’s residence and other related locations on 22 April 2025 led to the seizure of what ED describes as 'incriminating materials', including documents detailing illegal kickbacks and asset acquisitions.
In connection with the same investigation, ED has previously provisionally attached assets worth around Rs510 crore belonging to CSPL and its promoter, Sanjay Sureka, who was arrested on 18 December 2024 and remains in judicial custody. A prosecution complaint has also been filed before the chief judge of the city sessions court in Kolkata on 15 February 2025, the agency says.
Concast Steel & Power, promoted by Sanjay Sureka and headquartered in Kolkata, operated integrated manufacturing facilities in West Bengal, Odisha and Andhra Pradesh. The company specialises in producing sponge iron, pig iron, mild steel, rolled products, TMT bars, angles, channels and ferro-alloys.
The company availed multiple credit facilities, including term loans, cash credit (CC) and letters of credit (LC) from a consortium of banks. However, most of these LCs later devolved, with the majority being opened in the names of related parties. Investigations revealed that funds from these LCs were systematically diverted to accounts of group companies and personal accounts.
During the probe, ED discovered that Sanjay Sureka had created a complex network of shell companies, using the names of employees, relatives and associates to launder funds. These funds were subsequently used for personal expenses and acquiring multiple immovable properties.
The ED stated that its investigation has so far revealed the use of accommodation entries, structured layering, and front companies for systematically settling bribes. Properties linked to shell companies have been identified, with more expected as the probe continues.
The agency emphasised that further investigation is ongoing to trace the full extent of proceeds of crime and the complicity of other officials or entities involved.
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Even a fool would have moved most assets so that they cannot be touched.
Is this delay deliberate to let the CMD get away with it?