ED Secures Return of Rs 63 Crore Scam Cash to Two Banks

 Hyderabad: The Enforcement Directorate has secured the return of Rs 63.05 crore worth properties recovered from GS Oils Limited to State Bank of India and UCO Bank for recouping loans which turned bad. The agency had filed cases against GS Oils and others in 2016 based on FIRs registered by the CBI based on complaints filed by the two bank for the non-repayment of loans, causing a loss of Rs 274 crore to SBI and Rs 32.33 crore to UCO Bank.

The ED investigation revealed that credit facilities availed by GS Oils became non-performing assets on account of fraud committed by the company and its promoters.

According to the investigation, the accused had round-tripped loans and parked the money into associate companies. The money was later either withdrawn in the form of cash or utilised for purchasing land in the name of associate companies. The land was once again mortgaged for more loans.

Investigation also revealed that large amounts of bank funds were diverted by fraudulently issuing Letters of Credit (LCs) to related shell firms for bogus supply of material. Such LCs were devolved, and the funds were illegally channelled back to their promoters, ultimately causing huge financial loss to the PSU banks.

Based on the orders of the Special PMLA Court, Nampally, Hyderabad, issued on March 2, 2025, and December 17, 2025, the ED restored recovered money to State Bank of India and UCO Bank.