The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former chairman and managing director of Uco Bank, in connection with a bank fraud probe, the investigation agency said on Monday.

He was taken into custody by ED’s Kolkata Zonal Office on May 16 from his residence, under the Prevention of Money Laundering Act (PMLA), 2002, the ED said. 

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Further, he was produced before a special PMLA court in Kolkata on May 17, and the court sent him to ED custody till May 21.

An FIR was registered by the Central Bureau of Investigation (CBI), based on which the ED has led the investigation. The FIR was regarding credit sanctions extended to Chhattisgarh-based company CSPL. 

These loans, amounting to Rs 6,210.72 crore in principal, were allegedly misused and siphoned off by the borrower group.

The ED said that the credit facilities in question were approved during Goel’s leadership at Uco Bank. 

“ED investigation revealed that during the tenure of Subodh Kumar Goel as CMD of Uco Bank, large credit facilities were sanctioned to CSPL by Uco Bank, which were subsequently diverted and siphoned off by the borrower group. In turn, Subodh Kumar Goel received substantial illegal gratifications from CSPL,” it added.

The agency claimed that Goel received illicit benefits in the form of cash, immovable properties, luxury items, and hotel bookings. These were allegedly routed through a network of shell firms, proxies, and family members to obscure the illicit origin of the funds.

“The illegal gratification was layered and channeled through various entities to give a facade of legitimacy,” the ED said.

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