ED Returns ₹63.05 Crore Worth Of Properties To SBI, UCO Bank In GS Oils Fraud Case

The Enforcement Directorate (ED) has handed over properties worth ₹63.05 crore to State Bank of India (SBI) and UCO Bank under the Prevention of Money Laundering Act (PMLA). Out of the total amount, assets worth ₹62.30 crore were returned to SBI, while UCO Bank received properties valued at ₹75 lakh.

These assets were earlier attached during a bank fraud investigation against M/s G.S. Oils Ltd and other related entities.

Background Of The Fraud Case

The ED started its investigation in 2016 based on cases filed by the Central Bureau of Investigation (CBI). The probe followed complaints from SBI and UCO Bank, which accused G.S. Oils Ltd of failing to repay loans.

The company had taken multiple credit facilities from both banks, which later turned into non-performing assets due to alleged fraudulent activities.

How The Fraud Was Carried Out

According to the ED, the loans were misused through round-tripping of funds. Money was transferred to associate companies, withdrawn in cash, or used to buy land in their names. These properties were then mortgaged again to obtain more loans.

The agency also found that bank funds were diverted by issuing fake Letters of Credit (LCs) to shell companies for non-existent supply of goods.

Losses Faced By Banks

The investigation revealed that SBI suffered a wrongful loss of around ₹274 crore, while UCO Bank incurred losses of about ₹32.33 crore due to the fraud committed by the accused parties.

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Court-Approved Restitution

The restitution of assets was completed after the Special PMLA Court in Nampally, Hyderabad, approved petitions filed by SBI and UCO Bank. The restored properties include agricultural and industrial land located in Telangana’s Adilabad, Asifabad and Mancherial districts, as well as in Wani, Maharashtra.

Conclusion

The return of ₹63.05 crore worth of assets marks a significant step in recovering bank losses in major fraud cases. It also highlights the ED’s role in ensuring that seized assets are returned to rightful claimants following court approval.

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