Former Chairman and Managing Director of UCO Bank (formerly United Commercial Bank), Subodh Goel, has been arrested by the Enforcement Directorate (ED). Goel has been arrested from his Delhi residence for alleged money laundering in a bank loan fraud case worth over Rs 6,200 crore involving Kolkata based Concast Steel and Power Ltd (CSPL).
He was arrested on May 16, and produced before a Court on May 17, which granted Goel’s custody to ED till May 21.
Central Bureau of Investigation (CBI) had filed an FIR regarding credit facilities extended to CSPL by the Bank and subsequent siphonage and diversion of the loan amount sanctioned which was over 6,200 Crores.
ED had also conducted raids at Goel’s premises and other locations linked to him in April this year. The central agency says Goel received kickbacks in lieu of the loans extended to CSPL.
The agency said, “The illegal gratification was layered and channeled through various entities to give a facade of legitimacy.”
