The Enforcement Directorate (ED) has returned properties valued at Rs 63.05 crore to the State Bank of India and UCO Bank as part of a money laundering investigation involving G. S. Oil Limited. The ED’s Hyderabad Zonal Office completed the restitution process under the Prevention of Money Laundering Act, 2022, with Rs. 62.30 crore going to SBI and Rs. 75 lakh to UCO Bank.
The ED initiated an investigation in 2016 against G.S. Oils Ltd. and others based on FIRs filed by the CBI, BS & FC, Bangalore, and CBI, ACB, Nagpur following complaints from SBI and UCO Bank. The investigation revealed that loans sanctioned to G.S. Oils Limited and others turned into Non-Performing Assets (NPA), causing significant losses to SBI and UCO Bank.
It was found that G.S. Oils Limited availed credit facilities from SBI and UCO Bank, which turned into NPAs due to fraudulent activities. The investigation uncovered a scheme where loans were diverted to associate companies and used for land purchases, leading to further loans. Additionally, funds were siphoned off through fraudulent Letters of Credit to shell firms, causing substantial financial losses to the banks.
