Enforcement Directorate Arrests Chartered Accountant in UCO Bank Fraud Investigation

The Enforcement Directorate (ED) has arrested a chartered accountant linked to a significant bank loan fraud case. Anant Kumar Agarwal is accused of laundering money in a Rs 1,460-crore fraud involving former UCO Bank CMD Subodh Kumar Goel. Agarwal was detained under the Prevention of Money Laundering Act (PMLA) in Kolkata on June 25, as part of an ongoing investigation into Concast Steel and Power Ltd (CSPL) and others.

Goel, who previously served as the CMD of UCO Bank, was apprehended by the ED in May for his involvement in this case. The agency claims that Agarwal played a crucial role in laundering illicit funds for Goel over a long period. He allegedly created and managed numerous shell companies to disguise illegal funds through fake financial activities like unsecured loans and share capital transactions.

Role of Shell Companies in Fraud

Agarwal reportedly held significant positions in companies directly involved in these laundering operations. These entities were used to convert illegal funds into legitimate-looking share capital and unsecured loans. The ED stated that Agarwal received payments for his services in facilitating these transactions.

According to the ED, Goel was instrumental in approving loans exceeding Rs 1,460 crore to CSPL, which later became non-performing assets (NPA). In return for sanctioning these loans, Goel allegedly received substantial illegal gratifications. These included cash, properties, luxury items, and services channeled through a network of shell companies.

Investigations and Seizures

The agency also uncovered evidence of accommodation entries, hawala transactions, and structured layering using front companies to systematically settle kickbacks. Recently, the ED conducted searches in the National Capital Region (NCR) to probe individuals suspected of extorting money from those under investigation in this case.

During these searches, authorities seized cash, gold, incriminating documents, and digital devices. The ED revealed that money was extracted by making false promises of assistance in ongoing investigations. A special PMLA court has remanded Agarwal to ED custody until July 5 as investigations continue.

This case highlights the complex web of financial transactions used to launder money and evade detection. The ED's ongoing efforts aim to unravel these networks and hold those responsible accountable for their actions.

With inputs from PTI