ED restores ₹63 crore worth of attached assets to SBI, UCO Bank in G.S. Oils case
HYDERABAD: The Directorate of Enforcement (ED) Hyderabad Zonal Office has completed the restitution of attached properties valued at about ₹63.05 crore to State Bank of India (₹62.30 crore) and UCO Bank (₹75 lakh). The assets were earlier attached under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the case against G.S. Oils Limited.
The ED had launched its probe in 2016 based on Central Bureau of Investigation (CBI) FIRs filed in Bengaluru and Nagpur following complaints from the two public sector banks. The company and its associates had allegedly secured loans that later turned non-performing assets (NPAs), causing losses of ₹274 crore to SBI and ₹32.33 crore to UCO Bank.
Funds diverted through shell firms
The investigation revealed that G.S. Oils Limited diverted funds by round tripping loans through related companies. The borrowed money was allegedly withdrawn in cash or used to purchase land in the names of associate firms, which were later mortgaged to raise additional loans. The probe also found that fraudulent Letters of Credit (LCs) were issued to shell entities for fictitious material supplies, with the proceeds funnelled back to the promoters.
Court allows restitution petitions
Acting on the ED’s recommendation, SBI and UCO Bank filed applications under Section 8(8) of the PMLA before the Special PMLA Court in Nampally, Hyderabad. The court, through orders dated March 24, 2025, and December 17, 2025, approved the restitution petitions, allowing the restoration of the attached assets to the banks.
The properties include agricultural and industrial lands in Telangana’s Adilabad, Asifabad, and Mancherial districts, and in Wani, Maharashtra. Officials said this step represents a major effort to return proceeds of crime to the financial institutions affected by fraud.
