Hyderabad, Dec 24 (NationPress) The Directorate of Enforcement (ED) has successfully returned properties appraised at Rs 63.05 crore to both the State Bank of India and UCO Bank as part of an ongoing investigation into money laundering involving G. S. Oil Limited.

The ED's Hyderabad Zonal Office has finalized the restitution of attached assets, totaling around Rs. 63.05 crore, in accordance with the Prevention of Money Laundering Act (PMLA), 2022. The restitution comprises Rs. 62.30 crore for the State Bank of India and Rs. 75 lakh for UCO Bank.

The agency issued a statement on Wednesday, revealing that their investigation into G.S. Oils Ltd. commenced in 2016 following FIRs filed by the CBI, BS & FC, Bangalore, and the CBI, ACB, Nagpur, based on complaints from both banks. The banks alleged that G.S. Oils Limited and its affiliates secured loans that subsequently became Non-Performing Assets (NPA), resulting in a reported loss of Rs. 274 crore for SBI and Rs. 32.33 Crore for UCO Bank.

The investigation by the ED uncovered that G.S. Oils Limited had acquired various credit lines from both banks. All of these credit lines transformed into NPAs due to fraudulent activities by the involved parties.

Funds were funneled back through loan round-tripping into various associate firms, which subsequently withdrew cash or acquired land under the names of these companies, which were then mortgaged for further loans.

Moreover, the inquiry indicated that substantial sums from the banks were misappropriated by illegitimately issuing Letters of Credit (LCs) to affiliated shell companies for non-existent material supply. These LCs defaulted, funneling the funds back to the promoters, leading to significant financial detriment for the public sector banks.

The ED confirmed that both the State Bank of India and UCO Bank were encouraged to submit restitution petitions under Section 8(8) of the PMLA, 2002, to the Special PMLA Court in Nampally, Hyderabad. The ED also agreed to the restitution of attached properties to ensure they were returned to the victims, namely SBI and UCO Bank.

The court, through rulings on March 24 and December 17, 2025, granted the restitution requests from both banks, thereby facilitating the return of attached properties.

The properties approved for restitution by the Hon’ble Court include agricultural and industrial lands located in the districts of Adilabad, Asifabad, and Mancherial in Telangana, in addition to areas in Wani, Maharashtra.

This restitution process signifies a pivotal move in the ED's mission to return properties to their rightful owners and guarantee that the Proceeds of Crime are redirected to those who have suffered losses, as stated by the agency.