Mumbai : Builder Niranjan Hiranandani and Son Summoned by ED in Alleged FEMA Violation 

The Enforcement Directorate (ED) has called upon famous builder Niranjan Hiranandani and his son Darshan Hiranandani to appear for questioning on Monday, 26th February. The investigation revolves around an alleged foreign exchange violation case.

Niranjan Hiranandani, an Indian resident, and his son Darshan, who has maintained non-resident Indian status for the past 14 years while living in Dubai, received the summons via email due to their absence from India. 

The ED has also requested many documents related to a foreign direct investment (FDI) case involving the Hiranandani Group. During the ED’s search, documents were recovered concerning the company’s transactions. However, certain documents linked to the Panvel and Chennai FDI-related Foreign Exchange Management Act (FEMA) cases were reportedly missing. The Hiranandani Group explained that due to the case’s 15-year-old nature, it took time to retrieve old records for the investing authority.

In the alleged FEMA violation case, the ED found that Hiranandani Group entities had purportedly received Rs400 crore through the FDI channel for housing projects in Panvel and Chennai. However, the utilization of these funds allegedly did not adhere to prescribed RBI guidelines. The ED is now investigating potential fund diversions and regulatory non-compliance. 

Additionally, it was revealed that ”A group entity failed to repay loans secured from a consortium of banks, leading to its classification as a non-performing asset (NPA).” Another Hiranandani group entity took over an incomplete project through Debt Recovery Tribunal proceedings, prompting the ED to scrutinize the takeover for signs of manipulation or irregularities.

Sources indicate that ”The Hiranandani allegedly established at least 25 companies and a trust in the British Virgin Islands between 2006 and 2008.” The ED is seeking details on these entities, including profiles, investments, and connections to Indian business group transactions. The investigation unfolds as the authorities delve into potential financial discrepancies and non-compliance within the Hiranandani Group.