The Enforcement Directorate's Kolkata division has taken into custody Subodh Kumar Goel, the former chairperson and managing director of UCO Bank, in connection with a massive financial fraud involving the misappropriation of bank funds exceeding ₹6,210 crores.

The arrest stems from allegations related to fraudulent credit facilities extended to Concast Steel & Power Ltd (CSPL), where loan amounts were subsequently diverted and misused by the borrowing entity. The ED's action follows an investigation initiated based on a complaint filed by the Central Bureau of Investigation's Bank Securities and Frauds Branch.

Mr. Goel was apprehended at his Delhi residence on May 16 and subsequently presented before a special court in Kolkata the following day. The court granted the ED custody of the accused until May 21 to facilitate further investigation.

The ED's probe uncovered evidence suggesting that during Mr. Goel's leadership at UCO Bank, the institution approved substantial credit lines for CSPL. The investigation revealed a pattern of corrupt practices where Mr. Goel allegedly accepted various forms of illegal compensation from entities connected to CSPL.

These illicit benefits reportedly included cash payments, real estate properties, luxury items, and expensive hotel accommodations. To conceal the corrupt transactions, the payments were allegedly channeled through a network of shell companies, intermediaries, and family connections, all designed to obscure the link to CSPL.

This case is part of a broader ED investigation into CSPL and associated parties under the Prevention of Money Laundering Act, 2002. As part of the ongoing probe, the agency has already frozen immovable assets valued at approximately ₹510 crores belonging to Sanjay Surekha and CSPL.

The ED conducted simultaneous searches across multiple locations nationwide on May 22, targeting residences of Mr. Goel and other individuals connected to the case. These operations yielded significant evidence, including documentation allegedly proving the various illegal payments received by the former bank executive.

The case highlights the serious nature of banking fraud in India and the ongoing efforts by enforcement agencies to hold senior banking officials accountable for their role in facilitating such financial crimes.