Former Uco Bank Chairman Subodh Kumar Goel Arrested in Rs 6,210 Crore Fraud Case
| 2025-05-19
Former Uco Bank Chairman Held in Money Laundering Investigation.
Enforcement Directorate arrests ex-Uco Bank chairman Subodh Kumar Goel in money laundering probe linked to Rs 6,210 crore loan fraud involving CSPL.
India’s financial crime agency has arrested former Uco Bank chairman Subodh Kumar Goel in connection with an alleged Rs 6,210 crore loan fraud, the Enforcement Directorate said on Monday.
Goel was taken into custody by the ED’s Kolkata Zonal Office on 16 May under the Prevention of Money Laundering Act (PMLA), 2002. He was brought before a special court in Kolkata the following day and remanded to ED custody until 21 May.
Loan Misuse Under Investigation
The ED’s action stems from a case originally registered by the Central Bureau of Investigation (CBI), which investigated credit facilities granted to Chhattisgarh-based company CSPL. The loans, valued at Rs 6,210.72 crore (approximately US$745 million), were allegedly misappropriated by the borrower group.
According to the ED, these loans were sanctioned during Goel’s tenure as Chairman and Managing Director of Uco Bank. The agency claims that the funds were diverted by CSPL and used for purposes other than those for which the loans were approved.
“ED investigation revealed that during the tenure of Subodh Kumar Goel as CMD of Uco Bank, large credit facilities were sanctioned to CSPL… which were subsequently diverted and siphoned off by the borrower group. In turn, Subodh Kumar Goel received substantial illegal gratifications from CSPL,” the agency said in an official statement.
Allegations of Illicit Gains
The Enforcement Directorate further alleged that Goel benefited personally from the financial misconduct. These alleged benefits included cash payments, real estate, luxury items, and hotel bookings.
To obscure the origin of these assets, the ED claims that the funds were routed through a complex network involving shell companies, front entities, and relatives of Goel. “The illegal gratification was layered and channelled through various entities to give a façade of legitimacy,” the agency stated.
Investigators said they had identified several properties allegedly acquired through entities controlled or beneficially owned by Goel and his family members. These holdings are now under scrutiny as part of the probe.
Involvement of Shell Companies and Fronts
The ED also linked the funding for these acquisitions to CSPL, suggesting that corporate kickbacks were systematically settled using “accommodation entries and structured layering”.
“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 ED noted.
Previous Arrests and Asset Seizures
The investigation has already led to the arrest of Sanjay Sureka, identified as the principal promoter of CSPL, in December 2024. A formal chargesheet was filed in February 2025 in a special court in Kolkata.
In separate actions, assets worth Rs 510 crore (approximately US$61 million) belonging to Sureka and CSPL have been attached under two PMLA orders.
India’s Fight Against Financial Crimes
The case is among several high-profile financial crime investigations currently being pursued by India’s central agencies. The Prevention of Money Laundering Act empowers the Enforcement Directorate to investigate the movement of illicit funds and seize assets connected to criminal activity.
Public sector banks in India have faced scrutiny in recent years for their exposure to large loan defaults. The government has increased regulatory oversight and taken steps to strengthen compliance in an effort to curb banking fraud.
Founded in 1943, Uco Bank is one of India’s major state-owned lenders, with a significant presence across urban and rural markets. The arrest of its former chairman is expected to raise concerns about governance practices and risk assessment procedures within the country’s public banking sector.
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