Updated February 25th, 2024 at 14:07 IST

ED Summons Niranjan Hiranandani and Dubai-Based Son in Alleged Foreign Exchange Violation Case

Niranjan Hiranandani, an Indian resident, and his son Darshan, a non-resident Indian residing in Dubai for the past 14 years, received email summons due to thei

Reported by: Business Desk
Niranjan Hiranandani and Darshan Hiranandani | Image:Republic Business
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ED Summons Hiranandani: The Enforcement Directorate (ED) has summoned builder Niranjan Hiranandani and his son Darshan Hiranandani for questioning on February 26th about an alleged foreign exchange violation case. This investigation centers on a foreign direct investment (FDI) case involving the Hiranandani Group.

Niranjan Hiranandani, an Indian resident, and his son Darshan, a non-resident Indian residing in Dubai for the past 14 years, received email summons due to their absence from India.

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The ED has requested several documents related to the FDI case, with certain documents linked to Panvel and Chennai FDI-related Foreign Exchange Management Act (FEMA) cases reportedly missing during the ED's search. The Hiranandani Group cited the 15-year-old nature of the case, explaining that retrieving old records took time.

In the alleged FEMA violation case, the ED found that Hiranandani Group entities received Rs 400 crore through the FDI channel for housing projects in Panvel and Chennai. However, the utilization of these funds allegedly did not comply with prescribed RBI guidelines, prompting the ED to investigate potential fund diversions and regulatory non-compliance.

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It was also disclosed that a group entity failed to repay loans, resulting in 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 group 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 authorities explore potential financial discrepancies and non-compliance within the Hiranandani Group.

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Published February 25th, 2024 at 13:48 IST