ED attaches properties worth Rs. 63.05 cr of Adilabad based GS Oils in Rs. 306 Cr scam

Hyderabad: The Enforcement Directorate (ED) has attached movable properties worth Rs. 63.05 crore owned by GS Oils Limited and its associate companies in a Rs. 306 crore bank fraud case. ED initiated a money laundering investigation on the basis of an FIR registered by CBI, Bangalore, under various sections of the IPC against GS Oils, its associate companies, and its directors for cheating and causing wrongful loss to the erstwhile State Bank of Hyderabad (presently State Bank of India).

The investigation revealed that GS Oils had availed various credit facilities from SBH and UCO Bank such as cash credit, term loans, and LCs. All such credit facilities had turned into non-performing assets on account of the fraud committed by the accused persons. Loans were round-tripped and parked into various associate companies and subsequently either withdrawn in cash or used to purchase land in the name of associate companies, which were again mortgaged for more loans.

It was also found that large amounts of bank funds were diverted by fraudulently issuing LCs to related shell firms for bogus supply of material. Such LCs were devolved and the said funds were illegally channeled back to its promoters, causing huge financial losses to the PSU banks.

The first provisional attachment order was issued in 2017 by the ED and a prosecution complaint was filed. Now, additional assets which were used to acquire loans from the banks have been identified and an order attaching agricultural land (around 2,050 acres) in Adilabad and plants and machinery of the accused company was issued.