Bank fraud case: ED attaches Rs 28-cr assets of Paramount Airways promoter Thiagarajan under PMLA

New Delhi: Assets worth Rs 28.19 crore of Paramount Airways promoter M Thiagarajan have been attached under the anti-money laundering law in a case related to alleged bank fraud, the Enforcement Directorate (ED) said on Thursday.

It said a provisional order for attachment of assets has been issued by it under the Prevention of Money Laundering Act (PMLA).

Seventeen immovable assets in Madurai and Tenkasi (Tirunelveli) and company share investments held by Thiagarajan have been seized as part of the latest action, it said.

“Immovable and movable properties worth Rs 28.19 crore have been attached under the PMLA in an ongoing investigation against M Thiagarajan and Paramount Airways Private Limited, Madurai,” the agency said in a statement.

Thiagarajan was the promoter and the managing director of Paramount Airways Private Limited, a commercial airline company, which till 2010 was operating in the domestic sector, it said.

It started operations in 2005 and was flying passengers to south and eastern parts of India.

Paramount Airways Private Limited availed various credit facilities from five nationalised banks on the basis of credit insurance policies issued by Oriental Insurance Company Limited, the agency said.

The ED had filed a criminal case against Thiagarajan on the basis of two separate chargesheets filed against him and others by the CBI.

While the first chargesheet dealt with causing wrongful loss to five nationalised banks to the tune of Rs 441.11 crore, the second CBI criminal complaint dealt with fraudulently obtaining scheduled operator permit (SOP) by the airline from the Directorate General of Civil Aviation (under the ministry of civil aviation) by misrepresentation and falsification of documents.

The ED also charged that Thiagarajan “fraudulently diverted funds to the tune of Rs 19.68 crore to an account in Singapore which during investigation revealed to be his own entity and registered with British Virgin Island”.

In addition, it said, further to the de-registration of his aircrafts, Thiagarajan “illegally diverted aircraft spare parts which were hypothecated to the lending banks without the knowledge of the lending banks to overseas entities and diverted the proceeds to his group entities.”

The ED said the attached immovable properties include factory premises of Paramount Mills P Limited, a company belonging to Thiagarajan who is currently running and controlling it in the name of Briar Knoll Mills Private Limited.