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Indian authorities have arrested Subodh Kumar Goel, the former Chairman and Managing Director of UCO Bank, in connection with major money laundering and bank fraud worth some $726 million.
The case concerns loans he allegedly approved to Concast Steel & Power Ltd. (CSPL) during his tenure. Investigators say the funds were diverted through shell companies and front entities by the borrowers and in exchange, Goel allegedly received large illegal payments.
According to the Enforcement Directorate (ED), Goel was paid in cash, real estate, luxury items, and hotel stays. These benefits were routed through family members and dummy companies to hide the origin of the money. The agency says the transactions were structured to appear legitimate.
On April 22, officers searched Goel’s home and other locations and seized documents that allegedly show how the bribes were organized. The ED said it identified several properties bought through shell firms linked to Goel and his family. The agency claims these purchases were funded with money connected to CSPL.
In an earlier phase of the investigation, Indian authorities froze assets worth approx. $59.7 million tied to CSPL and its main promoter, Sanjay Sureka. Sureka was arrested in December 2024 and remains in judicial custody. A prosecution complaint was filed in February 2025 before the City Sessions Court in Kolkata.
The ED began its investigation based on a complaint from the Central Bureau of Investigation (CBI), Kolkata. The original case focused on the misuse of loans and the diversion of some $726 million. This figure covers only the principal loan amount and does not include interest.
The investigation is ongoing.
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