HYDERABAD: The Enforcement Directorate (ED) has provisionally attached Rs 63 crore worth of properties of Adilabad-based GS Oils Limited for bank loan fraud.
ED had initiated money laundering probe on the basis of an FIR registered by CBI banking securities and fraud cell, Bangalore. The case was registered against GS Oils Limited, associate companies and its directors for cheating and causing wrongful loss to State Bank of Hyderabad (now State Bank of India).
Investigation by ED revealed that GS Oils Limited had availed various credit facilities such as cash credit, term loans and letters of credit (LCs) from SBH and UCO Bank.
“Credit facilities have turned non-performing assets (NPAs) on account of the fraud. Loans were round-tripped and parked in various associate companies and subsequently either withdrawn in cash or utilised for purchasing land in the name of these companies, which were again mortgaged for more loans. It is also found that large amounts of banks funds were diverted by fraudulently issuing LCs to shell firms for bogus supply of material. LCs were devolved and the said funds were illegally channelled back to its promoters, ultimately causing huge loss to the public sector banks,” alleged ED.
ED identified total proceeds of crime acquired by GS Oils Limited to be worth Rs 306 Crore.
After the first provisional attachment order, now additional assets used to acquire loans from banks have been identified. The present order has attached around 2,050 acres of agriculture land in Adilabad, and plants and machinery of the accused company.
