New Delhi: The Enforcement Directorate (ED) has arrested Subodh Kumar Goel, former chairman and managing director, UCO Bank, in a money laundering probe related to a bank fraud case against a private company. This was revealed by the ED on Monday.
The agency said in a statement that Goel was arrested in Delhi under provisions of the Prevention of Money Laundering Act (PMLA) and produced before a special court in Kolkata. The court sent him to ED custody till May 21.
The probe was launched after the Central Bureau of Investigation (CBI) lodged an FIR relating to the sanction of credit facilities to a company and subsequent large-scale diversion and siphoning of loan funds amounting to Rs 6210.72 crore (principal amount without interest).
“ED investigation revealed that during the tenure of Subodh Kumar Goel as CMD of UCO Bank, large credit facilities were sanctioned to the company by UCO Bank, which were subsequently diverted and siphoned off by the borrower group. In turn, Subodh Kumar Goel received substantial illegal gratifications from the company. The illegal gratification was layered and channeled through various entities to give a facade of legitimacy,” ED has stated.
“investigation revealed that Goel received cash, immovable properties, luxury goods, hotel bookings etc routed through a web of shell companies, dummy persons and through family members to conceal the criminal origin of the money. Several properties acquired through shell companies have been identified. These shell entities are beneficially owned or controlled by Subodh Kumar Goel and his family members,” the Agency added.
“Evidence gathered so far also shows use of accommodation entries and structured layering through front companies for systematic settlement of kickbacks,” the statement added.
Goel’s residence was raided along with those of others were raided by the ED on April 22, during which incriminating material containing details of various illegal gratifications received by Goel was seized, the Agency has said.
ED had earlier provisionally attached assets worth nearly Rs 510 crore of the company involved. The promoter of the company was arrested on December 18 and is now in judicial custody.
