New Delhi- The Enforcement Directorate (ED) on Monday said that it has attached 290 properties (movable and immovable) worth Rs 63.05 crore belonging to GS Oils Limited and its associate companies in connection with a Prevention of Money Laundering case pertaining to bank fraud.
Total proceeds of crime acquired by G.S. Oils Limited is Rs 306.33 crore.
First attachment order was issued in 2017 and a Prosecution Complaint was also filed. This is the second provisional attachment order issued in this case.
Initially a case was lodged in this respect by the CBI’s Banglore branch. The ED initiated the probe of money laundering on the basis of the FIR of the CBI.
CBI’s FIR was against GS Oils Limited, its associate companies, its directors for cheating and causing wrongful loss to erstwhile State Bank of Hyderabad (presently State Bank of India).
The ED learnt in the investigation that GS Oils Limited had availed various credit facilities from SBH and UCO Bank such as cash credit, term loans and LCs. All such credit facilities turned NPA on account of the alleged fraud committed by the accused. Loans were round tripped and parked into various associate companies and subsequently either withdrawn in cash or utilized for purchasing land banks in the name of associate companies, which were again mortgaged for more loans.
It was also learnt in the probe 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 and ultimately causing huge financial loss to the PSU banks.
Now, additional assets which were used to acquire loans from the Banks have been identified and the present attachment order has been issued attaching agricultural lands of around 2050 acres of land in Adilabad and plants and machinery of the accused company.
Further investigation in the matter is underway.
–IANS
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