ED Hyderabad Zonal Office Returns ₹63 Crore to SBI & UCO Bank
(By Syed Ali Taher Abedi)
Hyderabad, December 24, 2025: In a significant enforcement action underscoring the restitutionary mandate of the Prevention of Money Laundering Act, the Directorate of Enforcement (ED), Hyderabad Zonal Office, has completed the process of restoring attached assets worth approximately ₹63.05 crore to public sector banks, pursuant to proceedings under the PMLA, 2002.
The restituted properties include assets valued at ₹62.30 crore returned to the State Bank of India and ₹75 lakh to UCO Bank, which had been provisionally attached during the ED’s probe into M/s G.S. Oils Limited.
The investigation, initiated in 2016 on the basis of FIRs registered by the CBI following complaints by the lending banks, pertains to alleged fraudulent loan transactions that subsequently turned non-performing assets, resulting in a purported wrongful loss of ₹274 crore to SBI and ₹32.33 crore to UCO Bank.
The Enforcement Directorate’s investigation has unearthed that M/s G.S. Oils Limited had procured sundry credit facilities from the State Bank of India and UCO Bank, all of which were subsequently classified as Non-Performing Assets (NPAs) owing to the fraudulent machinations orchestrated by the accused persons.
The probe further discloses that the loan disbursements were systematically round-tripped and diverted to myriad associate entities, whereupon the proceeds were either encashed or deployed for acquiring immovable property in the names of said associates, which properties were thereafter mortgaged to secure additional credit facilities.
Additionally, substantial bank funds were misappropriated through the fraudulent issuance of Letters of Credit (LCs) in favour of related shell companies, ostensibly for fictitious supply of goods and materials, in blatant contravention of statutory banking norms and fiduciary duties.
Such LCs were devolved and the said funds were illegally channelled back to its promoters, ultimately causing huge financial loss to the PSU banks.
State Bank of India and UCO Bank were pursued to file restitution applications under Section 8(8) of the PMLA, 2002 before the Hon’ble Special PMLA Court, Nampally, Hyderabad and ED conveyed concurrence for restitution of immoveable properties attached by it so that such attached properties could be restored to the victims of the fraud i.e. SBI and UCO Bank.
The Hon’ble Special PMLA Court, Nampally, Hyderabad, vide orders dated 24.03.2025 and 17.12.2025, allowed the restitution petitions filed by State Bank of India and UCO Bank respectively thereby paving the way for restoration of attached assets.
The attached assets for which restitution has been allowed by the Hon’ble Court include agricultural and industrial lands located in the districts of Adilabad, Asifabad and Mancherial in Telangana, as well as in Wani, Maharashtra.
This restitution exercise marks a significant step in ED’s efforts to restore properties to their rightful claimants and to ensure that Proceeds of Crime are returned to those affected.
