Kolkata: The Enforcement Directorate has arrested Subodh Kumar Goel, former CMD of UCO Bank, for money laundering in excess of ₹6,200 crore, concerning an alleged bank fraud case,. The case is linked to Concast Steel and Power Ltd in Kolkata and other related entities.
Goel was arrested on May 16 from his residence by the ED; he was then produced the next day before a special PMLA court in Kolkata, which remanded him to ED custody until May 21 for further interrogation and investigation.
The federal agency says that Goel's alleged involvement includes the sanction and facilitation of irregular loans to Concast Steel and associated entities, which later became non-performing during his time at UCO Bank; this increased the already bursting bad assets in the books of the bank.
The investigation being carried out by the ED would assess if, while sanctioning the loans, Goel was aware of the violation of banking norms, also look into whether there was any kickback or parallel illegal financial transactions through any shell companies. This arrest is said to be part of a continued crackdown on high-profile banking frauds associated with public sector banks.
This development highlights the government's increased resolve to see that top banking officials are brought to book on financial fraud cases, especially under the provisions of the PMLA and the Companies Act.
[Source Credit: Financial Express]
