The Enforcement Directorate (ED) took real estate magnate and entrepreneur Niranjan Hiranandani in for questioning on Monday regarding an alleged foreign exchange violation.
Niranjan Hiranandani, known for his role as the promoter of the illustrious Hiranandani Group, a leading real estate firm based in Mumbai, along with his son Darshan Hiranandani, was summoned by the investigative agency to participate in an inquiry concerning a case under the Foreign Exchange Management Act (FEMA).
Last month, officials from the Enforcement Directorate conducted a search operation at various premises associated with Niranjan Hiranandani and Darshan Hiranandani, spanning across Mumbai and several other locations.Â
Darshan Hiranandani has been residing in Dubai for several years.
Niranjan Hiranandani and his family members were identified as beneficiaries of an offshore trust, which amassed assets exceeding $60 million. Additionally, the group's involvement in the Pandora Papers came to light during the investigation.
Between 2006 and 2008, the Hiranandani family established at least 25 companies and a trust in the British Virgin Islands. Investigations uncovered that they channeled investments amounting to over Rs. 400 crores as Foreign Direct Investments (FDIs) into group companies engaged in real estate ventures in Maharashtra and Tamil Nadu.
The probe agency alleges that the utilization of these funds did not adhere to the prescribed government guidelines.
One of the group entities, that received FDI, failed to repay loans procured from a consortium of banks, leading to its classification as a Non-Performing Asset (NPA).
Interestingly, the incomplete project was later taken over by another Hiranandani group entity through Debt Recovery Tribunal (DRT) proceedings.
Importantly, sources close to the matter informed news agency PTI that the recent interrogation by the Enforcement Directorate was unrelated to another FEMA investigation targeting Trinamool Congress leader Mahua Moitra, who was expelled as a Lok Sabha MP in December last year.
BJP MP Nishikant Dubey accused Moitra of orchestrating her inquiries in the Lok Sabha at the behest of Darshan Hiranandani, purportedly to target the Adani Group and Prime Minister Narendra Modi in exchange for favors.
However, Moitra refuted the allegations, asserting her innocence and contending that she was being singled out for scrutinizing the dealings of the Adani Group.
