A Kolkata-based businessman, Sanjay Sureka, orchestrated a massive financial fraud, swindling a consortium of government banks of over ₹6,200 crore. The elaborate scheme involved a network of 60 shell companies, with individuals like drivers, house-keeping staff, and junior employees deceptively listed as directors. These companies generated fictitious turnovers in iron and steel manufacturing, existing only on paper without any real business activity.
Sureka, the mastermind behind the scam, created these shell entities and, with the assistance of S.K. Goel, the former CMD of UCO Bank, secured loans amounting to ₹6,200 crore. The Enforcement Directorate (ED) investigation revealed the alarming discrepancy between the loan amounts and the actual liquidation value of the company, with assets barely reaching ₹600 crore and only ₹434 crore recovered so far from asset sales.
The ED initiated its investigation based on a CBI FIR against Sureka and his associates, leading to their arrest in December 2024. Further investigation led to the arrest of S.K. Goel on May 16 at his residence in New Delhi. The agency has since identified and attached properties worth over ₹106 crore linked to Goel's family members and aides.
At the center of the fraud was Concast Steel & Power Ltd (CSPL), once a prominent iron and steel group with plants across West Bengal, Odisha, and Andhra Pradesh. During Goel's tenure as CMD of UCO Bank, CSPL received substantial credit facilities, which were subsequently diverted and siphoned off. In return, Goel allegedly received illegal gratification from CSPL, funneled through a web of shell companies, dummy individuals, and family members to disguise the money's criminal origin. This gratification included cash, immovable properties, luxury goods, and hotel bookings. The ED has identified several properties acquired through these shell companies, which are beneficially owned or controlled by Goel and his family. Evidence indicates the use of accommodation entries and structured layering via front companies to systematically settle kickbacks. The agency had previously attached assets worth ₹510 crore belonging to Sureka and CSPL.
