ED arrests CA in money laundering case against ex-UCO Bank CMD

New Delhi, Jul 2 (PTI) A chartered accountant, who allegedly played a "key" role in laundering proceeds of a Rs 1,460-crore bank loan fraud case involving former UCO Bank CMD Subodh Kumar Goel, has been arrested, the Enforcement Directorate said on Wednesday.

Anant Kumar Agarwal was taken into custody under the Prevention of Money Laundering Act (PMLA) in Kolkata on June 25 in connection with an ongoing investigation in the matter of Concast Steel and Power Ltd (CSPL) and others in the bank fraud case, the federal probe agency said in a statement.

A special PMLA court sent Agarwal to ED custody till July 5, it said.

Goel, a former CMD of UCO Bank, was arrested by the ED in this case in May.

The ED alleged Agarwal, a chartered accountant (CA), played a "key" role in laundering "proceeds of crime" on behalf of Goel over an extended period.

"He knowingly incorporated and operated a web of shell companies to facilitate the layering of illicit funds through fictitious financial transactions such as bogus unsecured loans and share capital in exchange for cash.

"Agarwal also received payments for these services. He also held key positions in companies directly involved in laundering operations and utilised such concerns for conversion of illicit funds," the agency claimed.

Such illicit funds, it said, were brought into the books of accounts as share capital and unsecured loans.

Goel was arrested in the case for playing a "substantial" role in sanctioning loans of more than Rs 1,460 crore to CSPL which later on turned into NPA (non-performing asset).

"In lieu of sanctioning loans to CSPL, Goel received substantial illegal gratifications in the form of cash, immovable properties, luxury goods and services routed through a web of shell companies," the ED said.

Evidence also shows the use of accommodation entries (hawala transactions) and structured layering through front companies for systematic settlement of kickbacks, it said.

The agency also conducted searches recently in the National Capital Region (NCR) to investigate the role of some individuals, who it said, were engaged in "extorting" money from some persons against whom an ED probe is going on in this case.

"Money was extracted by making false promises of helping in the said investigations. During the searches, cash, gold and various incriminating records and digital devices were seized," the ED said. PTI NES KVK KVK