The Enforcement Directorate (ED) has provisionally attached properties worth ₹28.19 crore under the Prevention of Money Laundering Act (PMLA), 2002, in an ongoing investigation against Paramount Airways Private Limited, Madurai, and its promoter M. Thiagarajan. Further investigations are in progress.
A statement issued by the ED said the attached immovable properties included factory premises of Paramount Mills Pvt Limited, a company belonging to M. Thiagarajan who is currently running and controlling it in the name of Briar Knoll Mills Private Limited. Investments of Mr. Thiagarajan in Paramount Textile Mills Pvt Limited in the form of shares have also been attached.
Credit from 5 banks
Paramount Airways Pvt Limited has availed various credit facilities from five nationalised banks on the basis of credit insurance policies issued by Oriental Insurance Company Limited. The ED initiated investigation under the provisions of PMLA on the basis of two separate chargesheets filed by the CBI against Mr. Thiagarajan and Paramount Airways Pvt Limited.
The first chargesheet was for causing wrongful loss to five nationalised banks to the tune of ₹441.11 crore. The second one was for fraudulently obtaining scheduled operator permit (SOP) from the DGCA, Ministry of Civil Aviation, by misrepresentation and falsification of documents. The note sent by the ED said Mr. Thiagarajan fraudulently and illegally diverted funds to the tune of ₹19.68 crore to an account in Singapore which during investigation was revealed to be his own entity, registered with BV Island. Mr. Thiagarajan also fraudulently and illegally diverted aircraft spares/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 ongoing investigation against him resulted in identification of 17 immovable properties at Madurai and Tenkasi. As these assets were found to be involved in money laundering as per the provisions of PMLA, the same have been attached provisionally.