Chennai, March 7 : The Enforcement Directorate (ED) on Thursday said it has provisionally attached assets worth Rs 28.19 crore under the Prevention of Money Laundering Act (PMLA) in connection with the investigation against the now defunct Paramount Airways and its promoter M.
The attached immovable properties include factory premises of Paramount Mills Pvt Ltd, a company belonging to Thiagarajan who is currently running and controlling it in the name of Briar Knoll Mills Pvt Ltd.
The shares held by Thiagarajan in Paramount Textile Mills Pvt Ltd have also been attached.
Paramount Airways, which was in operation till 2010, had availed various credit facilities from five nationalised banks on the basis of credit insurance policies issued by the Oriental Insurance Co Ltd.
The ED initiated investigation under the provisions of PMLA on the basis of two separate chargesheets filed by the Central Bureau of Investigation (CBI) against Thiagarajan and Paramount Airways.
The first chargesheet was for causing wrongful loss to five nationalised banks to the tune of Rs 441.11 crore and the second for fraudulently obtaining Scheduled Operator Permit (SOP) from the Directorate General of Civil Aviation (DGCA).
Thiagarajan also illegally diverted funds to the tune of Rs 19.68 crore to an account in Singapore which during investigation was found to be his own entity and registered with British Virgin Islands.
In addition, Thiagarajan illegally diverted aircraft spares and parts which were hypothecated to the lending banks without their knowledge to overseas entities and diverted the proceeds to his group entities.