NEW DELHI: The Enforcement Directorate (ED) on Monday said it has arrested former UCO Bank CMD Subodh Kumar Goel on money laundering charges in an alleged bank loan fraud case of more than Rs 6,200 crore linked to a Kolkata-based company.
Goel was arrested from his residence here on May 16 in the case being probed against Concast Steel and Power Ltd (CSPL) and others.
He was produced before the special Prevention of Money Laundering Act (PMLA) court in Kolkata on May 17 which sent him to ED custody till May 21, the federal probe agency said in a statement.
The ED had raided the premises of Goel and some others in April as part of this investigation.
The money laundering case stems from a CBI FIR related to the sanction of credit facilities to CSPL and subsequent large-scale "diversion" and "siphoning" of loans amounting to Rs 6,210.72 crore (principle amount without interest).
The ED claimed that during the tenure of Goel as the CMD of UCO Bank, large credit facilities were "sanctioned" to CSPL which were subsequently "diverted" and "siphoned off" by the borrower group.
In turn, it alleged, Goel received "substantial illegal gratification" 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," the ED said.
Goel or his lawyer could not be contacted for a response on the allegations made by the ED against him.
The agency said several properties acquired through shell or dummy companies have been identified.
These shell entities are "beneficially owned or controlled" by Goel and his family members, it claimed.
"The source of funds 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," the ED said.
Sanjay Sureka, the main promoter of CSPL, was arrested by the ED in December, 2024 and a chargesheet was filed before the Kolkata court in February this year.
The agency had attached assets worth Rs 510 crore of Sureka and CSPL as part of two orders issued under the PMLA.