K S Oils Limited Clarifies Media Reports Regarding Alleged 75 Crore Trade Finance Fraud

K S Oils Limited Clarifies Media Reports Regarding Alleged 75 Crore Trade Finance Fraud​

K S Oils Limited has issued a clarification concerning media reports alleging involvement in a major trade finance fraud spanning the period from 2010 to 2014. The company addressed these claims, noting that its current operations and business continuity remain unaffected by the past allegations.

The reported matter involves alleged trade finance fraud amounting to 75 crore, involving K S Oils and six former officials, according to reports seen in print, electronic, and social media.

K S Oils Limited confirmed that as of the date of clarification, the company has not received any notice, summons, or official correspondence from the Central Bureau of Investigation (CBI) related to these alleged fraud activities.

Ownership Transition and Allegations Scope​

The company provided context regarding its history and current management structure. K S Oils Limited was acquired by Soy-Sar Edible Private Limited as part of a liquidation process under the Insolvency and Bankruptcy Code, 2016. This acquisition followed an order dated February 3, 2025, passed by the Hon'ble National Company Law Tribunal, Indore Bench.

K S Oils stated that the allegations regarding the trade finance fraud relate to the period between 2010 and 2014. During this time, the affairs of the company were under the control and management of the erstwhile management, prior to its acquisition by the present managing entity. The current management is actively examining the matter and taking all necessary legal and precautionary steps within the framework of the approved resolution/liquidation process and applicable laws.

Operational Status​

In line with the clarification, K S Oils Limited confirmed that business operations continue normally and are not impacted by the media reports. The company affirmed two key points: the reported fraud incident pertains to a period prior to its acquisition and relates solely to the affairs managed by the erstwhile management; furthermore, it has received no official communication from the CBI regarding this matter as of the date of clarification.

The company concluded that this clarification is being issued in the interest of transparency and to keep investors appropriately informed of the situation.