CBI files cheating case against Paramount Airways

The CBI has registered a cheating and forgery case against Chennai-based private airline Paramount Airways, its promoter M. Thiagarajan and others for allegedly diverting loans taken from four public sector banks to off-shore accounts.

“Searches are being conducted on the premises of Paramount Airways, Paramount Flight Services, Paramount Mills and Paramount Foundations, besides the residential, official premises of the accused, Mr. Thiagarajan, and other suspects in Chennai and Madurai,” said a CBI spokesperson.

The defunct airline was launched in 2005. It had taken a loan of Rs. 550 crore from six banks.

The CBI has registered the case under various IPC provisions alleging that its MD and promoter Mr. Thiagarajan disposed of assets of the airline without the prior permission of lending banks.

“It is also alleged that the proceeds were misappropriated by the promoters of the company. The accused siphoned off large amounts of money, between April 2008 and October 2010,” said the official.

Charge of diverting loans taken from four public sector banks to off-shore accounts