The Enforcement Directorate has provisionally attached immovable and movable properties worth ₹28.19 crore in an ongoing investigation against M Thiagarajan and Madurai-based Paramount Airways Private Ltd.

The ED has initiated this action under the Prevention of Money Laundering Act, 2002 (PMLA). The attached immovable properties include factory premises of Paramount Mills P Ltd, a company belonging to Thiagarajan, who is currently running and controlling it in the name of Briar Knoll Mills Private Ltd.

The ongoing investigation against Thiagarajan resulted in identification of 17 immovable properties at Madurai and Tenkasi in Tamil Nadu. As these assets were found to be involved in money laundering as per the provisions of PMLA, the same have been attached provisionally. The investments of Thiagarajan in Paramount Textile Mills P Ltd in the form of shares have also been attached. Thiagarajan was the promoter and the Managing Director of Paramount Airways, a commercial airline company, which till 2010 were operating airlines in the domestic sector.

Paramount Airways availed various credit facilities from five nationalised banks on the basis of credit insurance policies issued by Oriental Insurance Company Ltd, said an ED press note. The ED initiated investigation under the provisions of PMLA on the basis of two separate charge sheets filed by the Central Bureau of Investigation against Thiagarajan and Paramount Airways.

The first charge sheet was for causing wrongful loss to five nationalized Banks to the tune of ₹441.11 crore. While the second charge sheet was for fraudulently obtaining Scheduled Operator Permit from the DGCA, Ministry of Civil Aviation by misrepresentation and falsification of documents.

Further, the accused Thiagarajan also fraudulently and illegally diverted funds to the tune of ₹19.68 crore to an account in Singapore which during investigation revealed to be his own entity and registered with BV Island. In addition, further to the de-registration of his aircraft, Thiagarajan fraudulently and illegally diverted aircraft spares and 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.