Rs.6210.72 Crore Fraud in Banks! ED seizes Property of UCO Bank Ex-CMD and Others

The Directorate of Enforcement (ED), Kolkata Zonal Office, has provisionally attached movable and immovable properties worth ₹133.09 crore under the Prevention of Money Laundering Act (PMLA), 2002, on October 10, 2025. The action is part of an ongoing investigation against M/s Concast Steel and Power Ltd. (CSPL) and its promoter Sanjay Sureka.

The ED began its investigation based on an FIR filed by the CBI, BSFB Kolkata, against CSPL and its directors and promoters. The company allegedly defrauded banks and financial institutions of about ₹6,210.72 crore (excluding interest) through fraudulent practices such as Diversion and siphoning of loan funds, Submission of inflated stock statements and Manipulation of balance sheets.

Findings from the ED Investigation

Investigations revealed that Sanjay Sureka purchased several properties in the names of his relatives, employees, close associates, and shell companies controlled by him. It was also found that the loan funds obtained from banks were diverted through his group companies and used to purchase debentures of BDG Group companies, which were later converted into equity shares.

Earlier Actions by ED

Earlier in the same case, the ED had already attached assets worth ₹612.71 crore belonging to CSPL, its promoter Sanjay Sureka, and Subodh Goyal, the former CMD of UCO Bank. The agency has also filed a Prosecution Complaint on February 15, 2025, and a Supplementary Complaint on July 11, 2025. Additionally, Sanjay Sureka and Anant Kumar Agarwal were arrested by the ED and remain in judicial custody.

Goel was arrested for allegedly approving a massive loan of ₹6,210.72 crore to Concast Steel and Power Ltd (CSPL) in return for bribes. According to the ED, during his time as the CMD of UCO Bank, Goel sanctioned large credit facilities to CSPL. However, instead of using the funds properly, the borrower group diverted and misused the loan amount. In return, Goel received illegal payments and benefits.

On July 11, the ED’s Kolkata Zonal Office filed a supplementary chargesheet (called a “prosecution complaint”) against Subodh Goel, his family members, close aides, and several companies connected to them. Just two days earlier, on July 9, the agency had issued a provisional order to attach Goel’s properties and assets worth over ₹106 crore. So far, in this case, the ED has attached assets worth a total of around ₹612.71 crore.

The ED investigation revealed that the bribe money Goel received was not kept in his name directly. Instead, it was cleverly hidden through various methods to make it look legal. The money and benefits were routed through several shell companies (companies that exist only on paper), fake people, and even Goel’s own family members. This layering of transactions helped disguise the true source of the funds.

According to the ED, Goel did not just receive cash. He also received expensive gifts like luxury goods, bookings at high-end hotels, immovable properties, and other personal items. One example shared by the ED is that Goel allegedly accepted bribes from an iron ore company, which was itself a loan defaulter, and used that money to buy a property. He also made the defaulter pay for his family’s travel expenses and shopping, including items like sunglasses and even dry fruits.

Further Investigation Underway

The ED has identified a series of financial transactions with multiple companies suspected of helping to layer and conceal the proceeds of crime generated by CSPL. The roles of these companies, their directors, and other associated individuals are currently being examined to determine their involvement in the money laundering process and to trace the final beneficiaries of the illicit funds.