Banks ask Oriental to pay Rs 400 cr on Paramount default

The state-owned Oriental Insurance has been saddled with claims of Rs 400 crore from five banks, namely, State Bank of India, Bank of India, Indian Bank, Andhra Bank and IDBI Bank. The banks are looking to recover the money paid to the oil companies on behalf of Paramount Airways. Confirming the development, a senior executive at Oriental Insurance said: We have received the claim on account of Paramount Airways and our surveyor is conducting the due diligence. We are also examining legal remedies for the issue. The defunct Chennai-based airline had defaulted on bank guarantees issued by these five banks. ...

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