ED arrests former UCO Bank CMD Subodh Kumar Goel in money laundering case
The agency said in a statement that Goel was arrested in Delhi on May 16 under prevention of money laundering act (PMLA) and was produced before a special court in Kolkata the next day
The Enforcement Directorate (ED) has arrested former chairman and managing director of UCO Bank, Subodh Kumar Goel, from his residence in Delhi in a money laundering probe related to a bank fraud case against Concast Steel and Power Ltd and others, agency said on Monday.
The agency said in a statement that Goel was arrested in Delhi on May 16 under prevention of money laundering act (PMLA) and was produced before a special court in Kolkata the next day. The court in Kolkata sent him to ED custody till May 21.
The probe stems from a first information report (FIR) of the Central Bureau of Investigation (CBI) relating to the sanction of credit facilities to CSPL and subsequent large-scale diversion and siphoning of loan funds amounting to ₹6210.72 crore (principal amount without interest).
“ED investigation 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, Subodh Kumar Goel received substantial illegal gratifications from CSPL. The illegal gratification was layered and channeled through various entities to give a facade of legitimacy,” ED said in its statement.
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Further elaborating the alleged quid pro quo, ED said, “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. Several properties acquired through shell companies have been identified. These shell entities are beneficially owned or controlled by Subodh Kumar Goel and his family members,” it added.
The agency further said that “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 statement added.
Goel’s residence was raided along with other persons by ED on April 22, during which incriminating material containing details of various illegal gratifications received by Subodh Kumar Goel was seized, according to the agency.
Earlier, ED said, during the investigation of CSPL, assets worth approximately ₹510 crore in the form of immovable properties related to Sanjay Surekha and CSPL have been provisionally attached. Searches have also been conducted at several locations across many cities which has led to recovery of crucial incriminating materials.
The main promoter of CSPL, Sanjay Sureka was arrested on December 18 last year and is currently in judicial custody.
ED has also filed a charge sheet in the matter in February this year.
