ED Arrests Former UCO Bank CMD in Loan Fraud Case

Subodh Kumar Goel, former Chairman and Managing Director of UCO Bank, was arrested by the Enforcement Directorate (ED) at his New Delhi residence on May 16, 2025. As per the reports, he was presented before the Special Court under the Prevention of Money Laundering Act (PMLA) in Kolkata the next day. The court has remanded him to ED custody till May 21.

As of 1:26 PM on May 20, 2025, UCO Bank share price was trading at ₹31.57, a 1.93% decline, with a 23.95% decline over the past 6 months and a 44.17% decline over the past year.

Loan Irregularities Under Investigation

The arrest is part of an ongoing investigation into loans sanctioned to Concast Steel & Power Ltd (CSPL) amounting to ₹6,210.72 crore. The ED’s investigation is based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), Kolkata, which pointed to large-scale diversion and misuse of funds.

Findings by the ED

According to the ED, the credit facilities were issued to CSPL during Goel’s tenure at UCO Bank and were later misused. The agency claims Goel received illegal benefits in exchange for the sanctioning of these loans. These included cash, properties, and other assets, which were allegedly routed through shell companies and individuals connected to Goel and his family.

Property and Evidence

The searches were conducted on April 22 at Goel’s premises and those of associated individuals. The ED said several documents were recovered showing how illegal payments were layered and routed. Properties acquired using these funds have been linked to entities allegedly controlled by Goel or his family. The transactions were structured using dummy companies and accommodation entries.

Read more: UCO Bank Q4 FY25 Results: Profit Jumps 24% to ₹665.7 Crore, NPAs Improve

Linked Arrests and Attachments

In December 2024, the ED had arrested Sanjay Sureka, promoter of CSPL, who remains in judicial custody. Assets worth ₹510 crore connected to CSPL and Sureka have been provisionally attached. A prosecution complaint was filed before the City Sessions Court, Kolkata, in February 2025.

Conclusion

The investigation is still ongoing. The ED is continuing to examine the flow of funds and identify other individuals or entities that may have been involved in the case.

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