In a recent development, the Enforcement Directorate or ED has summoned Niranjan Hiranandani and his son Darshan Hiranandani, the prominent figures behind Mumbai-based real estate giant Hiranandani Group, for questioning in connection with a foreign exchange violation case. The father-son duo has been asked to appear at the central agency’s office in Mumbai, with the option to provide initial responses through an authorised representative.
The summons follows a series of searches held by the probe agency on four premises linked with the Hiranandani Group and its entities under the Foreign Exchange Management Act (FEMA) provisions. The ED officials are delving into allegations concerning the receipt of funds amounting to over ₹400 crore through the Foreign Direct Investment-FDI route for two housing projects located in Panvel and Chennai.
Among the concerns is the purported failure of one group entity, which received FDI, to repay loans from a consortium of banks, leading to its declaration as a Non-Performing Asset. Subsequently, another Hiranandani group entity reportedly took over the project in proceedings before the Debt Recovery Tribunal.
Additionally, the probe extends to suspicions regarding beneficiaries associated with a trust based in the British Virgin Islands (BVI) allegedly linked to the Hiranandani Group promoters. It’s reported that the Hiranandanis established approximately 25 companies and a trust in the British Virgin Islands between 2006 and 2008.
Contrary to speculation, the ED clarified that this investigation is unrelated to another FEMA probe involving TMC leader Mahua Moitra, who faced expulsion as a Lok Sabha MP in December last year.
Responding to the ED’s actions, the Hiranandani Group expressed cooperation with the investigation, stating their facilitation of all relevant information and clarifications sought by the authorities. They asserted upon the time-consuming nature of retrieving records related to a 15-year-old development. The group conveyed an understanding that the ED is satisfied with the absence of FEMA violations and reiterated their commitment to cooperation and compliance with the law.
