Companies & Sectors
Paramount Airways, Oriental ex-CMD charge-sheeted in Rs442 crore cheating case

The CBI said that the airline conspired to cheat and cause loss to SBI, Bank of India, Indian Bank, Andhra Bank, IDBI and Oriental Insurance, which had to bear claims of Rs442 crore on default of payment by Paramount Airways to the banks

The Central Bureau of Investigation (CBI) has filed a charge-sheet in a Delhi court against Paramount Airways Pvt Ltd, former CMD of Oriental Insurance Company (OICL) and four others for allegedly causing wrongful loss to five public sector banks and the public sector insurance firm against which claims of Rs442 crore were raised due to payment defaults by the airline, reports PTI.

 

In the charge-sheet filed before special judge Pradeep Chaddah, the CBI said the accused conspired to cheat and cause loss to State Bank of India, Bank of India, Indian Bank, Andhra Bank and IDBI and OICL, which had to bear claims of Rs442 crore on default of payment by Paramount Airways to the banks.

 

The CBI alleged that Chennai-based Paramount Airways had taken credit insurance from OICL for its multiple bank guarantees to cover its transactions with state-owned oil companies.

 

As the airline 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 Rs442 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 Rs442 crore lodged on OICL by the banks on account of default of payment by Paramount Airways to the banks,” the CBI said.

 

Besides the airline, M Ramadoss, the then CMD of OICL; M Thiagrajan, MD of the airline; V Harshvardhan, former deputy general manager of OICL; Niraj Kumar, OICL general manager; and Chandra Shekhar Tandon, DGM of OICL, have also been named as accused in the charge-sheet.

 

The probe agency said that Ramadoss of OICL entered into a criminal conspiracy with Thiagrajan, abused his official position and favoured the airline in issuance of 220 credit insurance policies during 2005-10.

 

The credit insurance policies were used in securing multiple bank guarantees from SBI, BoI, Indian Bank, Andhra Bank and IDBI to cover its transactions with PSU oil firms and to meet expenses relating to fuel, aircraft, lease, rent airport charges and others, it said.

 

“On default of Paramount Airways, the oil companies invoked bank guarantees and in turn, the five banks raised claims to the extent of Rs442 crore on OICL,” the agency said.

 

Even when some officials were reluctant to issue credit policies to Paramount Airways for want of requisite documents, Ramadoss convinced Thiagrajan to give exclusive mandate on aviation insurance to OICL, it said.

 

It said the credit policies were issued to Paramount in absence of proposal form and without seeing the financials and credit requirement of the Airline, without understanding the risks and without it having any re-insurance support and the banks were never roped in while accepting the risk.

 

“The entire sum insured was in the net of the company’s account. Claims were lodged by the banks for Rs441 crore which was to be absorbed by OICL as no recovery of this amount was possible in absence of re-insurance support (with Paramount),” the charge-sheet said.

 

The agency also said that Paramount was “reluctant in disclosing its financials during 2007-09 with OICL due to its poor financial health and negative credit worthiness”.

 

All the accused have been booked for criminal conspiracy, cheating under the IPC and also under the Prevention of Corruption Act.

User

Bharti Airtel September quarter net down 29.7% to Rs721 crore

Bharti Airtel’s total subscriber base across services stood at 262.6 million globally at the end of September 2012

Mumbai: Telecom major Bharti Airtel’s net profit declined for the 11th quarter in a row, dropping by 29.7% to Rs721.2 crore in July-September this year over the same period last year, reports PTI.

 

It had posted a net profit of Rs1,027 crore in the same period last fiscal, Bharti Airtel said in a BSE filing.

 

The total revenues were, however, up by 17.14% to Rs20,283 crore in the quarter against Rs17,276.4 crore in the year-ago period.

 

The company’s total subscriber base across services stood at 262.6 million globally at the end of September 2012.

User

Tata Steel to contest Rs6,000 crore fine imposed by Odisha government

“We are confident of resolving the issue with the government amicably,” Tata Steel

 
New Delhi: Tata Steel said it will contest the Rs6,000 crore fine imposed on the company by Odisha government over alleged violation of mining norms in the state, reports PTI.
 
The company, which has captive iron ore and manganese mines and dolomite quarries in Odisha, was slapped a fine of about Rs6,000 crore last week by the state government on the charges of “illegal and excess mining” at its iron ore mines.
 
Acknowledging the receipt of notices, the company said in an e-mailed statement that “we are contesting both the number and the cause.”
 
“We are confident of resolving the issue with the government amicably,” it further said and added that “we reiterate our contention that we have always undertaken mining in Odisha and also in other states where we operate with strict conformity with the existing laws.”
 
Noting that recently the mines ministry had brought out a notification defining irregularity in mining operations and illegal mining, the company also said that “this distinction is an important aspect of the whole issue of the demand put forth by the state government.”
 
The Odisha government had said that it has imposed whopping Rs67,900 crore penalty on 103 mines so far for excess production of iron ore.
 
“We have imposed penalty on major mining companies. So far 103 mines have been asked to pay fine totalling Rs67,900 crore for indulging in excess production of ore,” Odisha's Steel and Mines Minister RK Singh had said in Bhubaneswar yesterday.
 
Odisha accounts for a third of country’s iron ore production. Of late, it has also witnessed several controversies on illegal mining and currently a Centre-appointed Justice MB Shah Commission is probing the cases of illegal mining in the state.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)