CBI files case against Paramount promoter

Says M Thiagarajan sold assets without banks' knowledge; allegation denied

The CBI (Central Bureau of Investigation) has registered a case against defunct Paramount Airways and its promoter M Thiagarajan for allegedly defrauding and diverting loan to offshore accounts.

Officials said search operations were on in at least seven locations in Chennai and Madurai. These include the office and residences of Thiagarajan, who headed the airline that started operations in 2005. The airline closed in early 2010.

The CBI said that the then managing director and promoter of Chennai- and Madurai-based private airline had sold moveable and fixed assets without the knowledge and permission of the banks which had extended credit facilities to the airline. The statement did not mention the name of the person.

AIR POCKETS

• CBI has registered a case against defunct Paramount Airways and its promoter M Thiagarajan for allegedly defrauding and diverting loan to offshore accounts
   
• Officials said search operations were on in at least seven locations in Chennai and Madurai. These include the office and residences of M Thiagarajan, who headed the airline that started operations in 2005. It was closed in early 2010.
   
• The statement added that the allegations are the then managing director and promoter of Chennai- and Madurai-based airline had sold moveable and fixed assets without the knowledge of the banks

Thiagarajan said the CBI had asked for some documents — given. “We will co-operate with them. Allegations are absurd. Documents we have provided will throw clear light on the factual position. We deny any wrongdoing in Paramount,” he said.

The CBI said these assets had been hypothecated to the banks. The CBI said these proceeds were misappropriated by the promoters of the company. The CBI said the then managing director and his company between April 2008 and October 2010 regularly siphoned off large amounts of money by transferring it to the accounts of offshore firms incorporated abroad and showing the same as payment towards “lease rental-engine access”.

The accused had allegedly persuaded the civil aviation regulator to issue NOC (no-objection certificate) for scheduled operator permit by giving false and fabricated information on the eligibility criteria for scheduled operator permit.

Searches are being conducted on Thursday at seven locations in Chennai/Madurai (Tamil Nadu) including the residential & office premises of then MD/Promoter & said company and others.