ED attaches 2,050 acres of land, assets worth Rs 63 crore of Karnataka firm in fraud case
India Today
has attached 2,050 acres of agricultural land in Telangana and assets worth Rs 63.05 crore of Bengaluru-based G S Oils Limited in a bank fraud case.
The Enforcement Directorate (ED) has attached assets worth Rs 63.05 crore of a Bengaluru-based firm in a bank fraud case, officials said. The attached assets include movable and 290 immovable properties belonging to G S Oils Limited and its associate companies.The financial probe agency had initiated its money laundering investigation based on an FIR registered by the Central Bureau of Investigation (CBI) against G S 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 has alleged that G S Oils Limited had availed various credit facilities from the State Bank of Hyderabad and UCO Bank. All such credit facilities allegedly turned into non-performing assets (NPA) 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by the accused persons.“Loans were round tripped and parked into various associate companies and subsequently either withdrawn in cash or utilized for purchasing land in the name of associate companies, which were again mortgaged for more loans. It is also found that large amounts of banks funds were diverted by fraudulently issuing the letter of credits to related shell firms for bogus supply of material,” said the ED in a statement.
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Such credit letters were allegedly devolved and the funds were illegally channelled back to their promoters and ultimately causing huge financial loss to the banks.According to the agency, G S Oils Limited defrauded Rs 306.33 crore.Earlier, the ED had issued an attachment order in September, 2017 and a chargesheet was also filed by the agency.In the recent attachment, the ED attached 2,050 acres of agricultural land in Telangana’s Adilabad, plants and machinery of the accused company.
