BENGALURU: The Enforcement Directorate (ED) has provisionally attached movable and 290 immovable properties worth Rs 63.05 crore, belonging to GS Oils Ltd and its associate companies, in a bank fraud case. This is the second Provisional Attachment Order (PAO) issued in this case.
According to ED, the money laundering investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI) Bank Securities & Fraud Cases (BS& FC), Bengaluru. It was registered under various sections of the Indian Penal Code (IPC) against GS Oils Ltd, its directors and associate companies for cheating and causing wrongful loss to the erstwhile State Bank of Hyderabad (presently State Bank of India).
“Investigation by ED revealed that GS Oils had availed various credit facilities from SBH and UCO Bank, such as cash credit, term loans and Letters of Credit (LCs). All such credit facilities have turned non-performing assets (NPAs) 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 Loans were round-tripped and parked into various associate companies, and subsequently either withdrawn in cash or utilised for purchasing land banks in the name of associate companies, which were again mortgaged for more loans,” stated the ED, in an official release on Monday.