By News Desk 
Banking scams in India are, unfortunately, not a new story. From Punjab National Bank to Yes Bank, the list continues to grow. Now, another massive financial fraud has come to light, this time involving a major public sector bank — UCO Bank.
The Enforcement Directorate (ED) has arrested Subodh Kumar Goyal, the former Chairman and Managing Director of UCO Bank, in connection with a major loan fraud case. He stands accused of manipulating and misappropriating loans amounting to ₹6,210.72 crore.
Who is Subodh Kumar Goyal?
Subodh Kumar Goyal served as the Chairman and MD of UCO Bank. He was arrested on May 16, 2025, under the Prevention of Money Laundering Act (PMLA) from his residence in Delhi. Allegations against him include accepting massive bribes in exchange for sanctioning fraudulent loans.
At the center of this scandal is Concast Steel and Power Limited (CSPL). Goyal is accused of bypassing banking regulations to approve credit facilities for CSPL and receiving illicit benefits in return.
The Core of the Fraud
During Goyal’s tenure, UCO Bank allegedly extended large credit facilities to CSPL. These funds were later deliberately siphoned off and embezzled. In return, Goyal was reportedly rewarded with cash, expensive properties, luxury goods, hotel bookings, and other lavish perks — all provided through a network of shell companies.
According to the ED, the fraudulent transactions were carefully orchestrated and concealed using multiple fake corporate entities. The investigation uncovered concrete evidence, including financial records and property documents, linking Goyal to the misappropriated funds.
How the Scam Was Executed
The ED’s investigation reveals a well-planned scheme involving several shell companies, which were used to funnel illegal kickbacks to Subodh Kumar Goyal. The funds, received in the form of bribes from CSPL, were then laundered through investments in real estate, luxury assets, and fake business transactions.
Searches conducted at Goyal’s residence also uncovered unaccounted cash and documents directly tying him to the CSPL loan scam. It was found that these bribes were systematically disguised through fake corporate channels to avoid detection.
The Bigger Picture
This latest scam adds another dark chapter to India’s banking sector, highlighting persistent vulnerabilities in loan approvals and regulatory oversight — even within public sector banks. As investigations continue, this case could lead to more arrests and uncover wider networks of financial misconduct.
The arrest of a former CMD from a reputed bank like UCO Bank sends a strong signal about increasing scrutiny and accountability in India’s financial institutions.