With the recent arrest of Subodh Kumar Goel in a ₹6,200 crore loan fraud linked to Concast Steel & Power Ltd., India once again confronts an uncomfortable truth: financial crime is not just the handiwork of outsiders, but often begins at the top. Over the past decade, top executives from institutions like ICICI, SBI, IDBI, Yes Bank, and Bank of Maharashtra have been arrested for their roles in some of the biggest banking scams in Indian history—exposing systemic lapses and collusion in the very institutions entrusted with safeguarding the economy.
From Power to Prison: Subodh Goel and the ₹6,200 Crore Concast Scam
On May 16, 2025, the Enforcement Directorate (ED) arrested Subodh Kumar Goel, the former Chairman and Managing Director of UCO Bank, for his alleged role in laundering proceeds linked to a ₹6,200 crore loan fraud involving Concast Steel & Power Ltd. (CSPL). Goel was taken into custody from his residence and is currently being investigated under the Prevention of Money Laundering Act (PMLA).
According to officials, this case ties into a wider investigation into industrial loan frauds routed through public sector banks. It highlights not only the scale of corporate default but also the extent to which senior officials may have enabled these frauds through willful negligence or collusion.
Goel’s arrest is just the latest in a growing list of top bank executives held accountable for financial crimes. He joins an infamous roster of elite bankers whose careers ended not in retirement, but in handcuffs.
The Hall of Shame: India’s High-Profile Bankers Who Faced Legal Heat
The last decade has seen multiple towering figures in Indian banking fall from grace:
- Chanda Kochhar, former CEO of ICICI Bank, was arrested in 2022 (and later released) for sanctioning ₹3,250 crore in loans to the Videocon Group. The CBI claims a portion of this amount flowed into a firm owned by her husband, Deepak Kochhar. A 2016 whistleblower complaint opened the floodgates.
- S.K. Jain, ex-CMD of Syndicate Bank, was arrested in 2014 for accepting a ₹50 lakh bribe to increase credit limits for Bhushan Steel and Prakash Industries. Raids revealed cash, gold, and large fixed deposits stashed at his residence.
- Shyamal Acharya, then Deputy MD of State Bank of India, was caught in 2014 for sanctioning a ₹250 crore loan to Pioneer Agro Industries in exchange for ₹3 crore in kickbacks.
- Yogesh Agarwal, former CMD of IDBI Bank, faced arrest in 2017 for approving a ₹950 crore loan to Kingfisher Airlines, despite its poor financial health. His case was tied closely to the larger Vijay Mallya default saga.
- Ravindra Marathe, ex-CEO of Bank of Maharashtra, was held in 2018 over questionable loans totaling ₹94.5 crore to DSK Developers, part of a ₹2,043 crore scam. Charges were later dropped due to lack of evidence.
- Pratip Chaudhuri, former SBI Chairman, was briefly arrested in 2021 over the controversial sale of the ₹200 crore Garh Rajwada Hotel Project for just ₹25 crore. He was later granted bail, and SBI defended the transaction as lawful.
- Rana Kapoor, founder of Yes Bank, was arrested in 2020 in one of the largest bank-led money laundering cases. He is accused of accepting bribes from DHFL and Avantha Group, resulting in the seizure of assets worth over ₹2,200 crore.
Systemic Weakness or Individual Greed? What These Arrests Reveal
While the details vary, the core issues are consistent—weak internal checks, corporate-political collusion, personal profiteering, and regulatory blind spots. The ED, CBI, and other agencies are increasingly active in unearthing these scams, but arrests often come years after the damage is done.
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Financial analysts argue that the recurrence of such high-level frauds points to deep structural flaws in India’s banking governance. Whistleblower protections remain weak. Credit committees often operate with little transparency. The merging of public sector interests with political patronage continues to breed impunity.
Meanwhile, thousands of crores in non-performing assets (NPAs) accumulate, and public trust in banking institutions erodes. Despite reforms like asset quality reviews and tighter credit monitoring, accountability at the top remains elusive—until the law catches up.
As the Subodh Goel investigation unfolds, it raises familiar questions: Who else knew? Who benefited? And will this arrest mark a turning point, or simply join a long list of scandals with no systemic consequence?