Paramount Airways graft case: CBI pulled up

The court said the investigating officer (IO) has given a clean chit to the bank officials despite there being “prima facie overwhelming material on record against them”. 

According to the CBI charge sheet, Chennai-based Paramount Airways Pvt Ltd (PAPL), its managing director M Thiagrajan, then CMD of Oriental Insurance Company Ltd (OICL) M Ramadoss, and three other officers were accused of causing wrongful loss to five public sector banks and the  insurance company, against which claims of Rs 442 crore were raised due to payment defaults by the airline. 

Special CBI Judge Kamini Lau said the November 2010 investigation report of the insurance firm on PAPL showed the total amount of reported claims by the various banks was Rs 441.30 crore, prima facie showing the involvement of bankers. 

“All these documents also point out towards the severe irregularities, lapses and omissions committed by the officials of the various banks, that is, State Bank of India, Indian Bank, Andhra Bank, Bank of India and IDBI etc. in the commercial dealings with PAPL,” the court said. 

It said the CBI prosecutor and IO were unable to answer its queries on the issue of IO giving a clean chit to the bank officials despite prima facie overwhelming material on record against them.