Paramount Airways Private sued

Victoria
By Victoria November 5, 2012 12:02

Paramount Airways Private sued

The Central Bank of India (CBI) has charged against Paramount Airways Private, as well as the former chief managing director of Oriental Insurance and four others, for allegedly causing wrongful loss to five PSU banks and the insurance firm against which claims of Rs 442 crore were raised due to payment defaults by the airline.
The CBI says that the accused conspired to cheat and cause loss to State Bank of India, Bank of India, Indian Bank, Andhra Bank and IDBI and Oriental Insurance Co Ltd (OICL), which had to bear claims of Rs 442 crore on default of payment by Paramount Airways to the banks.
The CBI alleged that Chennai-based Paramount Airways had taken credit insurance from Oriental Insurance for its multiple bank guarantees to cover its transactions with state-owned oil companies.
As the airlines defaulted in paying to oil companies under the contract guarantee, the oil companies invoked bank guarantees and the banks in turn raised the claims of Rs 442 crore on OICL, it said.
“The case was registered in July 2011 on complaint against Ramadoss and others for causing wrongful loss to the government of India i.e., OICL and five PSU banks in the content of claims of Rs 442 crore lodged on OICL by the banks on account of default of payment by Paramount Airways to the banks,” the CBI said.
“On default of Paramount Airways, the oil companies invoked bank guarantees and in turn, the five banks raised claims to the extent of Rs 442 cr on OICL,” the agency said.
All the accused have been booked for criminal conspiracy, cheating under the IPC and also under the Prevention of Corruption Act.

Victoria
By Victoria November 5, 2012 12:02
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