The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former Chairman and Managing Director of UCO Bank, for allegedly taking a bribe and approving a loan of Rs 6,210.72 crore to Concast Steel and Power Ltd. (CSPL). He was arrested from his residence in Delhi last week and produced before the PMLA court in Kolkata on May 17, where he was sent to ED custody till May 21.
According to the ED, the investigation began based on an FIR filed by the CBI, BSFB, , regarding the sanction of credit facilities to CSPL and the alleged diversion and siphoning of Rs 6,210.72 crore (excluding interest).
“An ED investigation has revealed that during the tenure of Subodh Kumar Goel 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, Goel received substantial illegal gratifications from the CSPL,” an ED spokesperson alleged.
“The illegal gratification was layered and channelled through various entities to give a facade of legitimacy. Investigation has also revealed that Goel received cash, immovable properties, luxury goods, hotel booking etc. routed through a web of shell companies, dummy persons and family members to conceal the criminal origin of the money,” the spokesperson alleged.
The spokesperson claimed that several properties acquired through shell companies — beneficially owned or controlled by Goel and his family — have been identified.
“The source of the funds of these entities is linked to CSPL. Evidence gathered so far also shows use of accommodation entries… Searches were conducted on April 22 at the residential premises of Goel and other related persons. Various incriminating materials were seized,” the spokesperson said.
Earlier, during the investigation of CSPL, assets worth about Rs 510 crore in the form of immovable properties related to Sanjay Surekha and CSPL were provisionally attached under two Provisional Attachment Orders. “Searches were also earlier conducted at several locations across many cities, which led to recovery of crucial incriminating materials. The main promoter of CSPL, Sanjay Sureka, was arrested on December 18 last year and continues to be in judicial custody. Further, a Prosecution Complaint (PC) was filed before the Kolkata Court on February 15,” the spokesperson said.
