Hyderabad: The Directorate of Enforcement (ED) restored properties valued at Rs 63.05 crore to the State Bank of India and UCO Bank in connection with a money laundering investigation against G. S. Oil Limited.
ED’s Hyderabad Zonal Office completed the process of restitution of attached properties valued at approximately Rs. 63.05 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2022, to the State Bank of India (Rs. 62.30 crore) and UCO Bank (Rs. 75 lakh).
The Central agency said in a statement on Wednesday that it initiated an investigation against G.S. Oils Ltd. and others in 2016 based on FIRs registered by the CBI, BS & FC, Bangalore and CBI, ACB, Nagpur on the basis of complaints filed by SBI and UCO Bank.
They complained that G.S. Oils Limited and others got loans sanctioned, which became Non-Performing Assets (NPA) due to non-repayment, causing wrongful loss to SBI to the tune of Rs. 274 crore and to UCO Bank to the tune of Rs. 32.33 crore.
The ED investigation revealed that G.S. Oils Limited had availed various credit facilities from SBI and UCO Bank. All such credit facilities turned NPA on account of the fraud committed by the accused persons.
Loans were round-tripped and parked into various associate companies and subsequently either withdrawn in cash or utilised for purchasing land in the name of associate companies, which were again mortgaged for more loans.
Investigation also revealed that large amounts of banks’ funds were diverted by fraudulently issuing Letters of Credit (LCs) to related shell firms for bogus supply of material.
Such LCs were devolved, and the said funds were illegally channelled back to their promoters, ultimately causing huge financial loss to the PSU banks.
The ED said State Bank of India and UCO Bank were pursued to file restitution applications under Section 8(8) of the PMLA, 2002, before the Special PMLA Court, Nampally, Hyderabad, and ED conveyed concurrence for restitution of immovable properties attached by it so that such attached properties could be restored to the victims of the fraud, i.e. SBI and UCO Bank.
The court, through its orders dated March 24 and December 17, 2025, allowed the restitution petitions filed by State Bank of India and UCO Bank, respectively, thereby paving the way for the restoration of attached assets.
The attached assets for which restitution has been allowed by the Hon’ble Court include agricultural and industrial lands located in the districts of Adilabad, Asifabad and Mancherial in Telangana, as well as in Wani, Maharashtra.
This restitution exercise marks a significant step in ED’s efforts to restore properties to their rightful claimants and to ensure that Proceeds of Crime are returned to those affected, the agency said.
