Rs.6,200 Crore Bank Loan Scam in UCO Bank, Former CMD of UCO Bank Arrested by ED

A big case of fraud has come to light. UCO Bank’s Former MD&CEO has been arrested by Enforcement Directorate (ED). This is a big news related to the entire banking industry. The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, the former Chairman and Managing Director (CMD) of UCO Bank, in connection with a massive bank loan fraud case involving over ₹6,200 crore.

Goel was taken into custody from his residence in New Delhi on May 16, 2025. The case is linked to Concast Steel and Power Limited (CSPL), a Kolkata-based company, which is under investigation for allegedly misusing bank loans.

What is This Case About?

The case is related to the misuse and diversion of bank loans worth ₹6,210.72 crore. The original investigation was started by the Central Bureau of Investigation (CBI), and the ED is now looking into the money laundering aspect of the case.

According to the ED, during Subodh Goel’s time as CMD of UCO Bank, large loans were approved for CSPL. These funds were not used for their intended purpose and were instead illegally diverted. The ED alleges that Goel personally benefited from these transactions, which highlights big corruption in the loan sanctioning.

The ED has made several serious allegations against Goel. The ED has said that Subodh Goel received a lot of benefits for sanctioning loan to CSPL. He received cash, properties, luxury items, hotel stays and other high value services from CSPL. These benefits or illegal payments (gratification) were received via shell companies, fake individuals and family members. This highlights big corruption and big nexus in loan scam.

The ED said that some of these assets were bought through fake or front companies that were either owned or controlled by Goel and his family. The money used in these purchases can be traced back to CSPL, according to evidence gathered so far. The ED said that structured layering and dummy companies were used to hide the illegal nature of these transactions, making them look like clean, legal business activities.

Legal Action So Far

Goel was produced before a special court in Kolkata on May 17, 2025, under the Prevention of Money Laundering Act (PMLA). The court sent him to ED custody until May 21 for further questioning. Earlier, ED had raided Goel’s premises in April 2025 as part of their investigation.

Other Key People Involved

This is not the first arrest in this case. In December 2024, the ED arrested had arrested Sanjay Sureka, the main promoter of CSPL. A charge sheet was filed in February 2025, and the agency had also attached assets worth ₹510 crore belonging to Sureka and his company.

This case shows clearly that even the Bank CMD can’t escape from the hands of investigation agencies in case of any financial fraud. But involvement of CMD in such as big fraud has deteriorated the image of UCO Bank. This is not the only case where a CMD of a Bank has been arrested. In the past, the CMDs of other Banks have also been arrested.

• S K Jain, ex-CMD of Syndicate Bank, for alleged bribery in 2014
• Shyamal Acharya, former dy MD of SBI, also arrested in a bribery case the same year
• Yogesh Agarwal, IDBI ex-chairman, arrested in ’17 for ‘irregularities’ in extending loans to Kingfisher Airlines
• Ravindra Marathe, former CEO of Bank of Maharashtra, arrested in ’18 in DSK fraud case
• Pratip Chaudhuri, SBI ex-chairman, held in ’21 over bank’s sale of a defaulter’s assets to an ARC
• Rana Kapoor, YES Bank founder, arrested in ’20 in money laundering case
• Chanda Kochhar, ICICI Bk ex-CEO, held in 2023 for alleged graft. Now on bail & under trial