CBI registers case against Paramount Airlines promoter

The company had submitted a plan to re-start the operation with six ATR aircraft in 2013 but the banks wrote to the DGCA asking it to stop the operations of Paramount airlines until the company paid its dues.

The CBI alleged that the Managing Director of the company had moved the assets without the knowledge of the bank which had extended him credit for the airlines.

In another case of alleged wilful default of bank loans, the CBI on Thursday registered a case of forgery and cheating against the promoter of Paramount Airways M Thiagarajan. The CBI has said that Thiagarajan allegedly defrauded banks and diverted loans to his offshore accounts. After registering the case with the designated CBI court, the agency carried out searches at seven locations in Chennai and Madurai, including the office and residence of Thiagarajan.

In the FIR registered under various Sections of the Indian Penal Code relating to cheating and forgery, the CBI alleged that Thiagarajan had disposed of or sold hypothecated assets without the knowledge or permission of the banks which had extended credit against those.

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The CBI claimed that Thiagarajan and his firm “regularly siphoned off large amounts of money by transferring the same to the accounts of offshore firms incorporated abroad and showing the same as payment towards Lease Rental-Engine access” between April 2008 and October 2010. It is also alleged that he “induced” the Directorate General of Civil Aviation to issue no-objection certificate for scheduled operators permit by submitting false, fabricated information about eligibility criteria.

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The CBI alleged that the accused had also opened an offshore account in British Virgin Island in the name of a company which was headquartered in Singapore to which he diverted the money received as loans from SBI, Andhra Bank, Indian Overseas Bank and Bank of India between April 2008 and October 2010. The airline had started its operations in 2005 before it wound up 2010. The company had submitted a plan to re-start operations in 2013 but the banks wrote to the DGCA asking it not to allow the carrier to re-launch before clearing their dues.

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