The Enforcement Directorate (ED) has summoned Niranjan Hiranandani and his son Darshan Hiranandani, the promoters of the Hiranandani Group, for questioning in a foreign exchange violation case. The father-son duo has been asked to appear at the central agency’s office in Mumbai on Monday. However, they have the option to submit their initial responses through an authorized representative.
The summons follows ED’s search operations at four premises linked to the Hiranandani Group and its entities under the provisions of the Foreign Exchange Management Act (FEMA) earlier in the week.
What is the Case About?
ED officials are investigating allegations regarding the receipt of funds exceeding ₹400 crore through the Foreign Direct Investment (FDI) route for two housing projects in Panvel and Chennai. One of the group entities that received the FDI purportedly failed to repay loans from a consortium of banks, leading to its declaration as a Non-Performing Asset. Subsequently, another Hiranandani group entity took over the project in Debt Recovery Tribunal proceedings.
Additionally, the probe extends to beneficiaries of a British Virgin Islands (BVI)-based trust allegedly associated with the Hiranandani Group promoters. It is alleged that the Hiranandanis established around 25 companies and a trust in the British Virgin Islands between 2006 and 2008.
Response from Hiranandani Group
In response to the ED’s actions, the Hiranandani Group has pledged full cooperation with the investigation. An official spokesperson stated that the group has provided all relevant information and clarification sought by the department. Despite the inquiry’s focus on a 15-year-old development, the group has been diligent in retrieving old records. The spokesperson emphasized the group’s commitment to compliance with the law and reiterated cooperation with the authorities.
The ED has clarified that this probe is distinct from another FEMA investigation involving TMC leader Mahua Moitra, ensuring there is no link between the two cases.
As the investigation unfolds, stakeholders await further developments in this high-profile case involving one of Mumbai’s prominent real estate developers.
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