CBI lodges case against Paramount Airways, raids at 7 places

CBI has registered a case against defunct Paramount Airways and its promoter M Thiagarajan for allegedly defrauding and diverting loan to off-shore accounts. Immediately after registering a case, CBI sleuths swooped on seven locations and carried out searches at Chennai and Madurai.

The CBI alleged that Thiagarajan had submitted fake and false documents to get scheduled operator's licence and had also opened an off-shore account in British Virgin Island in the name of a company which was headquartered at Singapore.

He allegedly diverted loans from State Bank of India, Andhra Bank, Indian Overseas and Bank of India to offshore account between April 2008 and October, 2010.

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.

It is alleged that the accused had regularly siphoned off large amounts of money and showed them as payment towards Lease Rental-Engine access. Thiagarajan was not immediately available for comments and SMS sent to his mobile remain unanswered.

The CBI also alleged that he had "induced" the Director General Civil Aviation to issue No Objection Certificate for scheduled operators permit by submitting false abnd fabricated information about the eligibility criteria.

Paramount Airlines had started its operation in 2005 and was flying to South and Eastern part of India before it wound up its operation in 2010.

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.