India’s financial sector has once again been shaken by the discovery of a massive bank fraud—this time involving public sector lender UCO Bank. In a scandal reminiscent of past banking crises, the Enforcement Directorate (ED) has arrested Subodh Kumar Goel, the former Chairman and Managing Director (CMD) of UCO Bank, in connection with a ₹6,210.72 crore scam that has caused serious financial losses.

This case is now being considered one of the largest banking frauds in recent years, joining the infamous ranks of cases linked to Punjab National Bank, Yes Bank, and others. But who exactly is Subodh Kumar Goel, and how did he allegedly orchestrate this financial fraud?

Subodh Kumar Goel, a seasoned banker, began his career in 1974 at the Bank of Baroda and later served at Andhra Bank. He rose through the ranks, holding critical operational and administrative roles in HR, IT, Credit, and International Banking. An alumnus of the Delhi School of Economics, Goel also holds an LLB from the University of Rajasthan and is a Certified Associate of the Indian Institute of Bankers.

He was appointed CMD of UCO Bank, where he served with considerable influence. However, his seemingly spotless career came under intense scrutiny after the ED launched a probe into suspicious loan transactions.

The core of the scam revolves around fraudulent credit facilities sanctioned to Concast Steel & Power Limited (CSPL) during Goel’s tenure. The ED alleges that these loans, amounting to ₹6,210.72 crore, were sanctioned improperly and were subsequently siphoned off through a network of shell companies and dummy accounts.

Goel is accused of receiving substantial illegal gratification in return, including cash, luxury goods, real estate, and lavish hotel stays. According to ED investigations, these bribes were funneled through complex money-laundering mechanisms involving shell companies controlled by Goel and his family members. The funds were layered and disguised to look legitimate, making detection challenging.

The scam came to light following a CBI FIR, which served as the foundation for the ED’s money laundering case. The ED had raided Goel’s residence and other premises in April 2025. He was eventually arrested on May 16, 2025, from his home in Delhi under the Prevention of Money Laundering Act (PMLA).

Goel was produced before the special PMLA court in Kolkata on May 17 and was remanded to ED custody till May 21 for further interrogation.

The investigation has also revealed that Sanjay Sureka, the main promoter of CSPL, played a crucial role in this financial conspiracy. He was arrested in December 2024 and a chargesheet was filed against him in February 2025. ED has also attached assets worth ₹510 crore belonging to Sureka and CSPL.

According to the ED’s official statement:

• The fraud involved the systematic diversion and siphoning of bank loans.
• Shell entities were “beneficially owned or controlled” by Goel and his family.
• Funds were routed through dummy accounts, layered, and legitimized using front companies and accommodation entries.
• The entire process was structured to conceal the criminal origin of the laundered money.

This massive scam once again highlights critical gaps in due diligence and oversight mechanisms in public sector banks. While past frauds led to stricter compliance protocols and improved risk management, the UCO Bank episode underscores that vulnerabilities still persist.

Financial experts are now calling for even stricter scrutiny of large corporate loans, enhanced transparency in sanctioning processes, and swift action against defaulters and corrupt officials.

As the investigation unfolds, the UCO Bank scam involving Subodh Kumar Goel is poised to be a landmark case in India’s financial fraud history. The scale, sophistication, and audacity of the alleged misconduct have sparked public outrage and reignited calls for banking reforms.

With properties seized, arrests made, and court proceedings underway, all eyes are on how the justice system addresses one of India’s most high-profile banking frauds in recent memory.