New Delhi: A huge banking fraud involving more than Rs 6,200 crore has been uncovered by the Enforcement Directorate (ED). The scam was planned and carried out by Kolkatabased businessman Sanjay Sureka, who created a network of 60 shell companies that existed only on paper. These firms showed fake business activity but had no real operations.
How the Fake Companies Were Run?
The shell companies were shown as being run by drivers, office boys, housekeeping staff, junior employees, and relatives. These people were made directors only in name. Using these fake firms, Sureka created a false picture of a fastgrowing iron and steel business with massive turnover.
At the centre of the scam was Concast Steel & Power Ltd (CSPL), once a wellknown steel group with plants in several states. Sureka took control of the company in 2008 and slowly began building the web of fake entities.
Role of Bank Chief in the Fraud
The ED found that S K Goel, the then Chairman and Managing Director of UCO Bank, helped Sureka get loans worth Rs 6,200 crore between 2007 and 2010. These loans were taken without proper checks, interest, or penalties. In return, benefits were passed on to Goel through shell companies that bought properties for him and later transferred ownership to his family members.
Goel was arrested by the ED in May 2025. Properties worth over Rs 106 crore linked to his family and associates have been attached.
Fake Sales, No Real Money
The investigation revealed that CSPL showed fake sales, purchases, and transport of goods. Forged bills and fake truck receipts were created even though no goods were moved. Nearly 99 percent of sales and payments were only book entries, with no real money exchanged through banks.
Banks Left With Huge Losses
Despite years of fake activity, banks kept lending money. When CSPL collapsed, its assets were worth only about Rs 600 crore, and just Rs 434 crore has been recovered so far. The case shows how weak checks allowed public banks to lose thousands of crores.
