Sunday, November 23, 2014

Mumbai aviation firm pulls out of Odisha project

Mumbai: A Mumbai-based aviation company which had been helping an aviation company in Odisha to set up regional connectivity in that state, has pulled out of the project alleging that the Odisha firm was siphoning off funds and putting it into other uses, jeopardizing the future of the project.

In a complaint filed with the sub-judicial magistrate court in Bhubaneshwar, Supreme Aviation Pvt Ltd has said that the directors of M/s Air Odisha Pvt Ltd had approached them last year for business loan of Rs 1 crore for setting up offices and guest offices as per the requirement of aviation regulator Directorate General of Civil Aviation (DGCA). Accordingly, the Odisha company was provided a significant part of the loan.

The complainant added that in January this year it realised that the accused, through a well-knit criminal conspiracy, had committed fraud, cheating and criminal breach of trust and had utilised the loan amount for purposes other than those agreed upon. The money was allegedly used for personal as well as other business purposes, jeopardizing the regional connectivity project.
23/11/14 Shahkar Abidi/Daily News & Analysis
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