New Delhi, India – The Enforcement Directorate (ED) on Friday announced the filing of a chargesheet against former UCO Bank Chairman and Managing Director (CMD) Subodh Kumar Goel, along with his family members and close associates, in connection with an alleged bank loan fraud case exceeding ₹6,200 crore. The federal probe agency has also provisionally attached properties belonging to Goel worth ₹106.36 crore under the Prevention of Money Laundering Act (PMLA).
Subodh Kumar Goel was initially arrested by the ED in May from his Delhi residence as part of the ongoing investigation into a massive bank loan fraud linked to Kolkata-based TMT bars supplying company, Concast Steel & Power Ltd. (CSPL). He is currently held under judicial custody in a Kolkata jail.
Key Developments in the ED Investigation
- Arrest and Allegations: Goel’s arrest in May stemmed from his “substantial” role in sanctioning loans of over ₹1,460 crore to CSPL. These loans subsequently turned into Non-Performing Assets (NPAs), causing significant losses to the bank.
- Illegal Gratifications: The ED alleges that in exchange for sanctioning these loans to CSPL, Goel received “substantial illegal gratifications” which included cash, immovable properties, luxury goods, and various services. These benefits were purportedly routed through a complex web of shell companies to conceal their illicit origin.
- Chargesheet Filed: A fresh chargesheet (Prosecution Complaint) was filed before a special PMLA court in Kolkata on July 11. The chargesheet names Goel, his family members, close aides, and related companies as accused, detailing their alleged involvement in the money laundering scheme.
- Asset Attachments: As part of a provisional order issued under the PMLA on July 9, movable and immovable assets of Goel worth ₹106.36 crore were officially attached. This action freezes these properties, preventing their disposal during the ongoing legal process.
- Evidence of Layering: The ED claims that evidence uncovered during its investigation reveals the use of “accommodation entries” (a term often used for hawala transactions) and “structured layering” through front companies. This sophisticated layering was allegedly employed for the “systematic settlement of kickbacks.”
Further Arrests and Total Assets Frozen
The ED’s investigation has also led to other arrests in the case. In June, a Chartered Accountant named Anant Kumar Agarwal, identified as an alleged close associate of Goel, was arrested. Agarwal is accused of “facilitating accommodation entries, managing shell entities, and routing illegally acquired cash.” He is also currently lodged in jail.
With this latest attachment of Goel’s assets, the total value of properties frozen in the Concast Steel & Power Ltd. bank fraud case by the ED now stands at an impressive ₹612.71 crore. This ongoing investigation highlights the federal agency’s continued efforts to combat large-scale financial fraud and money laundering in the Indian banking sector.