The Directorate of Enforcement (ED), Hyderabad Zonal Office, has successfully completed the restitution of attached properties worth about ₹63.05 crore to public sector banks under the Prevention of Money Laundering Act (PMLA), 2002. Out of the total amount, ₹62.30 crore has been restored to State Bank of India (SBI) and ₹75 lakh to UCO Bank. The value mentioned is the value of the properties at the time they were attached by the ED.
These properties were attached during the ED’s money laundering investigation in the case related to M/s G.S. Oils Limited.
The ED began its investigation in 2016 based on FIRs registered by the CBI, including the CBI Banking Securities and Fraud Cell, Bengaluru, and the CBI Anti-Corruption Branch, Nagpur. The FIRs were registered following complaints filed by SBI and UCO Bank against M/s G.S. Oils Limited and others. The banks alleged that loans sanctioned to the company turned into non-performing assets (NPAs) due to non-repayment, causing a wrongful loss of ₹274 crore to SBI and ₹32.33 crore to UCO Bank.
During the investigation, the ED found that M/s G.S. Oils Limited had taken various credit facilities from SBI and UCO Bank, all of which later became NPAs due to fraudulent activities by the accused. The investigation revealed that loan funds were round-tripped and diverted to several associate companies. These funds were either withdrawn in cash or used to purchase land in the names of associate companies. The same properties were then mortgaged again to obtain fresh loans.
The ED also found that large amounts of bank funds were diverted by fraudulently issuing Letters of Credit (LCs) to related shell companies for fake supply of materials. These LCs were later devolved, and the funds were illegally routed back to the promoters of the company, resulting in heavy financial losses to public sector banks.
To recover the losses, SBI and UCO Bank were advised to file restitution applications under Section 8(8) of the PMLA before the Special PMLA Court at Nampally, Hyderabad. The ED gave its concurrence for restitution so that the attached immovable properties could be returned to the victims of the fraud, namely SBI and UCO Bank.
The Special PMLA Court, Nampally, through its orders dated 24 March 2025 and 17 December 2025, allowed the restitution petitions filed by SBI and UCO Bank. This cleared the way for the restoration of the attached assets to the banks.
The properties restored include agricultural and industrial land located in Adilabad, Asifabad, and Mancherial districts of Telangana, as well as in Wani, Maharashtra.
The ED said this restitution marks an important step in its efforts to return the proceeds of crime to their rightful owners and ensure that victims of financial fraud are compensated. The action highlights the agency’s continued commitment to recovering and restoring assets in major bank fraud cases.