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Informative

ED Restores Attached Assets Worth ₹63.05 Crore to SBI and UCO Bank in G.S. Oils Case

Update / Judgement Date

23 Dec 2025

Source

WCP News Bulletin

Author

Sakshi Bhardwaj — WCP Legal Desk

Reading Time

2 min read

Financial ManagementOther Legal Matters
ED Restores Attached Assets Worth ₹63.05 Crore to SBI and UCO Bank in G.S. Oils Case
WCP News Bulletin
Heading:

The Directorate of Enforcement (ED), Hyderabad Zonal Office, has successfully completed the restitution of attached properties valued at approximately ₹63.05 crore (value at the time of attachment) to State Bank of India (₹62.30 crore) and UCO Bank (₹75 lakh) under the provisions of the Prevention of Money Laundering Act, 2002. The properties were attached during money laundering investigations in the case of M/s G.S. Oils Limited.


Background of the Case:
  1. ED initiated investigation in 2016 against M/s G.S. Oils Limited and others based on FIRs registered by:
  2. CBI, BS & FC, Bangalore
  3. CBI, ACB, Nagpur
  4. The FIRs were lodged on complaints filed by State Bank of India and UCO Bank alleging loan fraud by M/s G.S. Oils Limited.
  5. The loans availed by the company turned Non-Performing Assets (NPAs) due to non-repayment.
  6. The fraud resulted in:
  7. Wrongful loss of ₹274 crore to SBI
  8. Wrongful loss of ₹32.33 crore to UCO Bank
Findings of ED Investigation
  1. M/s G.S. Oils Limited had availed multiple credit facilities from SBI and UCO Bank.
  2. The accused persons:
  3. Round-tripped loan amounts through associate companies
  4. Diverted funds by issuing fraudulent Letters of Credit (LCs) to shell firms for bogus supply of material
  5. Withdrew funds in cash or utilised them for purchasing land in the names of associate entities
  6. Mortgaged such properties again to obtain additional loans
  7. The diverted funds were ultimately channelled back to the promoters, causing substantial financial loss to public sector banks.
Restitution Proceedings
  1. SBI and UCO Bank were pursued to file restitution applications under Section 8(8) of the PMLA, 2002 before the Special PMLA Court, Nampally, Hyderabad.
  2. ED conveyed its concurrence for restitution of the attached immovable properties to enable restoration to the victim banks.
  3. The Special PMLA Court:
  4. Allowed SBI’s restitution petition vide order dated 24.03.2025
  5. Allowed UCO Bank’s restitution petition vide order dated 17.12.2025
Properties Restored

The attached assets restored pursuant to court orders include agricultural and industrial lands situated in:

  1. Adilabad, Asifabad, and Mancherial districts of Telangana
  2. Wani, Maharashtra


Significance:

This restitution exercise represents a significant milestone in ED’s efforts to:

  1. Ensure return of Proceeds of Crime to rightful claimants
  2. Strengthen victim-centric enforcement under the PMLA
  3. Reinforce accountability in large-scale banking fraud cases involving public sector banks