Ex-UCO Bank CMD arrested for ₹510 crore loan scam involving cash, property, luxury assets

Former UCO Bank Chairman and Managing Director Subodh Kumar Goyal has been arrested by the Enforcement Directorate (ED) in connection with a ₹510 crore loan fraud involving Kolkata-based Concast Steel and Power Limited (CSPL). ED investigations revealed that during his tenure at the bank, Goyal approved large loans to CSPL, which was the main beneficiary in the loan scam.

The ED statement issued on Monday detailed that Goyal received illegal benefits from CSPL and its network of shell companies. These benefits included cash payments, immovable properties, luxury goods, and hotel bookings. The transactions were conducted through shell companies, fictitious persons, and relatives to obscure the actual source of the funds.

Further inquiry uncovered several properties bought through these shell companies, which are controlled by Goyal or his family members. The funds for these companies were directly linked to CSPL, and the ED found that the loan proceeds were manipulated and diverted by the company after being sanctioned by the bank.

To disguise the illegal transactions as legitimate, the ED found layered money transfers executed through accommodation entries and front companies. Earlier, the ED had seized immovable properties worth ₹510 crore linked to CSPL and its promoter Sanjay Kumar Sureka. Raids conducted at Goyal’s residences recovered important documents that are now considered key evidence in the ongoing investigation.

Goyal has been produced before the Special Court under the Prevention of Money Laundering Act (PMLA) and has been remanded to ED custody until May 21. The ED continues to investigate the case to uncover additional links and beneficiaries involved in the loan fraud.