The Directorate of Enforcement (ED) has completed the restitution of properties worth ₹63.05 crore to State Bank of India (SBI) and UCO Bank under the provisions of the Prevention of Money Laundering Act (PMLA).
Of the total assets restored, properties valued at ₹62.30 crore have been returned to SBI, while UCO Bank has received assets worth ₹75 lakh. These properties were earlier attached by the ED as part of a money laundering investigation linked to an alleged bank fraud involving M/s G.S. Oils Ltd and others.
Background of the Case
The ED initiated its probe in 2016 based on multiple cases registered by the Central Bureau of Investigation (CBI) following complaints filed by SBI and UCO Bank. The banks had accused G.S. Oils Ltd and its associates of defaulting on loan repayments after availing various credit facilities.
Findings of the ED Investigation
According to the ED, the credit facilities sanctioned to the company eventually turned into non-performing assets (NPAs) due to fraudulent activities by the accused. The investigation found that the fraud resulted in a wrongful loss of ₹274 crore to SBI and ₹32.33 crore to UCO Bank.
The agency revealed that loan amounts were round-tripped and diverted to associate and shell companies. These funds were either withdrawn in cash or used to purchase land in the names of related entities. The acquired properties were later mortgaged again to secure additional loans.
Further, the ED stated that substantial bank funds were siphoned off by fraudulently issuing Letters of Credit (LCs) to related shell firms for bogus supply of goods, enabling large-scale diversion of funds.
Court-Approved Restitution
The restitution of the attached assets was carried out after the Special PMLA Court in Nampally, Hyderabad, allowed petitions filed by SBI and UCO Bank seeking restoration of properties.
The assets restored include agricultural and industrial land parcels located across Adilabad, Asifabad, and Mancherial districts in Telangana, as well as properties in Wani, Maharashtra.
