ED probing British Virgin Island entities floated by Hiranandani Group

ED searched the premises of Hiranandani Group on February 22 for alleged FEMA violations.

The Enforcement Directorate (ED) is probing the Hiranandani Group in connection with 25 British Virgin Island-based companies and a trust floated by the Mumbai-based realtor, people with direct knowledge of the matter have said.

The agency, tasked with investigating financial crimes including money laundering, on February 22 searched the premises of the realtor for alleged violation of Foreign Exchange Management Act (FEMA) rules.

“The British Virgin Island entities were started in the period between 2006 and 2008 and the probe is around the connection between the offshore entities and money brought into India through FDI route by the company,” one of the persons cited above told Moneycontrol.

The agency is also looking into a group company that received foreign direct investment and defaulted on its loans in India.

“The probe is also around one of the group entities that received strong FDI inflows but did not repay its loans to a consortium of lenders,” the person said.

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Pavan Burugula

Assistant Editor|Moneycontrol

"Hirco PLC a London Stock Exhange listed company invested into projects in Panvel and Chennai and defaulted on their loans. The projects were auctioned under the Sarefesi Act and were acquired by the Hiranandani Group." said a Hiranandani spokesperson responding to query sent by Moneycontrol.
"ED enquiry relates to compliances of Hirco PLC subsidiaries, the prior owners of these projects, and not the Hiranandani group.
Hence, the company is confident that there are no FEMA violations by it or it’s promoters."

Also read: ED searches Hiranandani Group's premises in and around Mumbai over FEMA violation: Report

'Cash-for query' scandal 

In October, Darshan Hiranandani, son of Niranjan Hiranandani, the founder of Hiranandani Group, hit the headlines in the so-called cash-for-query scandal involving Trinamool Congress leader Mahua Maitra.

BJP MP Nishikant Dubey wrote to the Lok Sabha Speaker alleging that Maitra, then a member of the House, accepted gifts and cash to raise queries in Parliament to protect businessman Darshan Hiranandani’s interests.

Hiranandani’s accepted using Moitra’s parliamentary login credentials to raise questions from the Centre. Moitra was later expelled from the House.

Also read: Who is Darshan Hiranandani, linked to the bribery allegations case against Mahua Moitra?

About the Hiranandani Group

Niranjan Hiranandani and Surendra Hiranandani started the business in 1978. The company has constructed and delivered about 48 million square feet of real estate, including 35 million square feet of residential and nearly 14 million square feet of commercial and retail space in Powai, Panvel, Thane (all part of the Mumbai Metropolitan Region), Chennai, Ahmedabad and Pune.

The group owns 250 acres of land in Alibaug, 500 acres in Khandala and 400 acres in Chennai.

(Disclaimer: The story was updated with comment of Hiranandani Group.)