ED Searches Properties of Niranjan Hiranandani’s Group, Its Entities Over Alleged FEMA Violations

Mumbai: The Enforcement Directorate (ED) is carrying out searches at the properties of Real Estate King Niranjan Hiranandani's Group and its entities at multiple locations in Maharashtra over alleged violations of rules under the Foreign Exchange Management Act (FEMA). The raids are underway at four locations, including at the residence of Niranjan Hiranandani, the group's registered office as well as its corporate office.

Sources in the probe agency told Republic that Niranjan Hiranandani and his family members were allegedly the beneficiaries of an offshore trust, which had accumulated assets worth more than USD 60 million. The group was also named in the Pandora Papers.

“Hiranandanis had set up at least 25 companies and a Trust in the British Virgin Islands between 2006 and 2008. They have also routed investments worth over Rs. 400 crores in the form of FDIs received in group companies having real estate projects in Maharashtra and Tamil Nadu. It has been gathered that the utilisation of the amount was not in accordance with the prescribed government guidelines,” the source revealed, adding that one of the group entities which received FDI did not repay loans taken from a consortium of banks and was declared NPA. 

Interestingly, the incomplete project was then taken over by another Hiranandani group entity in DRT proceedings. 

Denying Mohua Mitra's link to this case, top source in the agency said the investigation is in the preliminary stage and Niranjan Hiranandani will soon be summoned in this matter.

Official spokesperson of the Hiranandani Group told Republic, "We have extended full cooperation to the department by facilitating all the relevant information and clarification sought by them. Since the inquiry pertains to a 15-year-old development - it took time to dig out old records. The Group understands that the ED is satisfied that there were no FEMA violations. The group will remain cooperative and law-abiding.”

In addition to the ED, the Hiranandani Group is being investigated by the Income Tax Department for possible tax infractions. The I-T department had conducted searches at 25 Hiranandani Group locations across three cities – Mumbai, Bengaluru, and Chennai – in March 2022.