The Central Bureau of Investigation registered a cheating case against Chennai-based private airline Paramount Airways. M. Thiagarajan and others are in this case of cheating and forgery also for diverting loans from public sector banks to offshore 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 promoter Mr. Thiagarajan and other suspects in Chennai and Madurai,” said a CBI spokesperson.

The airlines were launched in 2005 and were operational in eastern and southern sectors which are about Rs. 550 crore loan from six banks. All these are registered in CBI case sheet.

CBI registered the case with many provisions of Indian Penal Code alleging as its managing director and promoter Mr. Thaigarajan assets including the movable and immovable are hypothecated without the prior permission of lending banks.

“It is also alleged that the proceeds were thereafter misappropriated by the promoters of the company. The accused siphoned off large amounts of money, between April 2008 and October 2010, through Transfers to offshore firms incorporated by him, by showing them as payment towards lease rental-engine access,” said the official.

The accused is induced the Director General Civil Aviation (DGCA) to issue the non-objection certificate for some scheduled operators permit by using false and fabricated documents according to CBI to meet eligibility criteria.