| ➡️ Get instant news updates on Whatsapp. Click here to join our Whatsapp Group. |
Enforcement Directorate (ED) have arrested Subodh Kumar Goyal, the former Chairman and Managing Director (CMD) of UCO Bank, in connection with a huge bank loan fraud case worth around ₹1,400 crore. The arrest was made in New Delhi, and Goyal was brought to Kolkata on a transit remand on Saturday.
What Is the Case About?
This case is related to a company called Kancast Steel. The company had taken a large loan of approximately ₹1,400 crore from UCO Bank. However, instead of using the money for business purposes, the loan amount was transferred to several fake companies. This fraudulent activity caused huge losses to the bank.
Role of Former UCO Bank CMD
Investigations reveal that the fraud was carried out with the help of officials from Kancast Steel and the former UCO Bank CMD, Subodh Kumar Goyal. It is believed that Goyal played a key role and benefited financially from this scam.
The Enforcement Directorate is also taking action against the promoters of Kancast Steel for their involvement in this crime.
Earlier Actions by the Enforcement Directorate
In February this year, the ED seized properties worth ₹210 crore belonging to Sanjay Kumar Surekha, who owns the Kancast Group in Kolkata. Prior to this, in December last year, the ED had conducted a raid at Surekha’s residence in South Kolkata as part of the investigation into this bank loan fraud.
During that raid, officials recovered ₹2 crore in cash and jewellery worth ₹4.5 crore from Surekha’s house. Following these discoveries, Sanjay Surekha was also arrested by the ED.
What Happens Next?
The Enforcement Directorate is continuing its investigation and legal proceedings against all those involved in the fraud. The arrest of the former bank chief is a significant step in uncovering the full extent of the scam and ensuring that justice is served.
