ED arrests ex-UCO Bank chairman in ₹6,210cr fraud case
What's the story
The Enforcement Directorate (ED) has arrested former UCO Bank Chairman and Managing Director Subodh Kumar Goel in connection with a ₹6,210 crore fraud case.
He was arrested at his New Delhi residence on May 16.
The ongoing investigation is being conducted under the Prevention of Money Laundering Act (PMLA), 2002, and involves M/s Concast Steel & Power Ltd. (CSPL), among others.
Case details
Fraudulent credit facilities sanctioned during Goel's tenure
The ED claims that huge credit facilities were sanctioned to CSPL during Goel's time as CMD.
These funds were allegedly diverted and misused by the borrower group, with Goel receiving huge illegal gratifications in return.
The investigation revealed that the illegal gratification was routed through several companies to give an appearance of legitimacy.
Goel allegedly received payments in cash, properties, luxury items, hotel bookings and other gratifications through shell companies and dummy persons to hide the illegal source of funds.
Court proceedings
Goel's custody extended till May 21
Goel was produced before the Special Court (PMLA) in Kolkata on May 17, after which the court remanded him to ED custody until May 21 for further questioning.
The investigation was initiated after an FIR was lodged by the Central Bureau of Investigation (CBI), Kolkata, in relation to the sanction of credit facilities to CSPL and subsequent large-scale "diversion" and "siphoning" of loans amounting to ₹6,210.72 crore (principal amount without interest).