The Directorate of Enforcement, Hyderabad, has completed the restitution of attached properties valued at about ₹63.05 crore to public sector banks in connection with a money laundering case involving M/s GS Oils Limited.
According to the ED, properties worth ₹62.30 crore were restored to the State Bank of India, while assets valued at ₹75 lakh were restituted to UCO Bank under the provisions of the Prevention of Money Laundering (PMLA) Act. The properties had been attached during the course of the ED’s investigation into the case.
The ED initiated its probe against M/s G S Oils Limited and others in 2016, based on FIRs registered by the CBI’s Banking Securities and Fraud Cell in Bengaluru and the CBI’s Anti-Corruption Branch in Nagpur. The cases stemmed from complaints filed by SBI and UCO Bank, which alleged that loans sanctioned to the company had turned non-performing assets due to non-repayment, causing a wrongful loss of ₹274 crore to SBI and ₹32.33 crore to UCO Bank.
Investigations revealed that the company had availed multiple credit facilities from the two banks, all of which subsequently became NPAs due to fraudulent practices by the accused. The ED found that loan amounts were round-tripped and parked in associate companies before being withdrawn in cash or used to purchase land in the names of those entities. These properties were then mortgaged again to secure further loans. The probe also uncovered diversion of large sums of bank funds through fraudulently issued letters of credit to related shell firms for bogus supply of material, with the proceeds ultimately being channelled back to the promoters.
Following the investigation, SBI and UCO Bank were advised to file restitution applications under Section 8(8) of the PMLA before the Special PMLA Court at Nampally in Hyderabad. The ED conveyed its concurrence for the restitution of the attached immovable properties to enable their restoration to the victim banks.
The Special PMLA Court, through orders dated March 24, 2025, and December 17, 2025, allowed the restitution petitions filed by SBI and UCO Bank, paving the way for the return of the assets. The properties include agricultural and industrial lands located in Adilabad, Asifabad and Mancherial districts of Telangana, as well as land in Wani in Maharashtra.
The ED said that the restitution marked a step in its efforts to ensure that proceeds of crime are returned to rightful claimants and that victims of financial fraud are compensated.
Published – December 24, 2025 07:49 pm IST
