New Delhi, Dec 24 (UNI) The Enforcement Directorate (ED), Hyderabad Zonal Office, today announced that it has successfully completed the restitution of attached properties, worth approximately Rs 63.05 crore (at the time of attachment), to the State Bank of India (Rs 62.30 crore) and UCO Bank (Rs 75 lakh).
The properties were attached during investigations under the Prevention of Money Laundering Act (PMLA) in the case involving G.S. Oils Limited.
The ED initiated its investigation against G.S. Oils Ltd. and others in 2016 based on First Information Reports (FIRs) registered by the CBI, BS & FC, Bangalore, and CBI, ACB, Nagpur. These FIRs stemmed from complaints filed by SBI and UCO Bank against G.S. Oils Limited & others for securing loans that later turned into non-performing assets (NPAs) due to non-repayment. This caused a wrongful loss of Rs 274 crore to SBI and Rs 32.33 crore to UCO Bank.
The ED’s investigation revealed that G.S. Oils Limited had availed various credit facilities from SBI and UCO Bank, all of which became NPAs due to fraud committed by the accused. Loans were round-tripped and parked in various associate companies, subsequently either withdrawn in cash or used to purchase land in the names of those associate companies, which were then mortgaged for further loans.
The investigation also found that large amounts of bank funds were diverted through the fraudulent issuance of Letters of Credit (LCs) to related shell firms for bogus supply of materials. These LCs were devolved, and the funds were illegally channelled back to the company’s promoters, ultimately causing significant financial loss to the public sector banks.
SBI and UCO Bank were encouraged to file restitution applications under Section 8(8) of the PMLA, 2002, before the Special PMLA Court in Nampally, Hyderabad. The ED conveyed its concurrence for the restitution of the immovable properties it had attached so that these assets could be restored to the fraud victims—SBI and UCO Bank.
The Special PMLA Court in Nampally, Hyderabad, allowed the restitution petitions filed by the State Bank of India and UCO Bank, thereby paving the way for the restoration of the attached assets. These assets include agricultural and industrial lands located in the Adilabad, Asifabad, and Mancherial districts of Telangana, as well as in Wani, Maharashtra.
“This restitution exercise marks a significant step in the ED’s efforts to restore properties to their rightful claimants and to ensure that proceeds of crime are returned to those affected,” said an ED official.
ED returns attached properties worth Rs 63 Cr to banks in fraud case
