The Enforcement Directorate (ED) questioned prominent real estate developer Niranjan Hiranandani on March 4, 2024, in connection with an ongoing investigation into alleged violations of the Foreign Exchange Management Act (FEMA). This development comes over a month after the ED conducted searches at various premises of the Hiranandani Group in Mumbai and surrounding areas.
Hiranandani, the founder and managing director of the Hiranandani Group, appeared before ED officials at their office in Mumbai. He was questioned in connection with accusations that he and his son, Darshan Hiranandani, are beneficiaries of an offshore trust based in the British Virgin Islands (BVI) that reportedly holds assets exceeding $60 million.
The ED investigation reportedly centers around allegations that the Hiranandani Group routed over Rs 400 crore in foreign direct investments (FDIs) received by group companies involved in real estate projects in Maharashtra and Tamil Nadu. Investigators suspect that these funds may not have been utilized in accordance with prescribed government guidelines.
Earlier, both Niranjan and Darshan Hiranandani had been summoned by the ED for questioning. While Niranjan initially cited health concerns to postpone his appearance, Darshan requested additional time to join the investigation. However, both individuals eventually appeared before the ED to answer questions related to the ongoing probe.
The Hiranandani Group has maintained its innocence throughout the investigation, stating that all its businesses and transactions are fully compliant with Indian laws and regulations. The group has also reportedly submitted documents to the ED in its defense.
This development marks a significant step in the ED's investigation into potential FEMA violations by the Hiranandani Group. The outcome of the probe and any potential charges that may arise from it remain to be seen.