The Enforcement Directorate on Thursday conducted searches at the premises of real estate major, Hiranandani Group, in Mumbai in connection with an alleged foreign exchange violation case.
Searches were carried out at four locations, including Niranjan Hiranandani’s residence and the group’s registered and corporate offices over alleged violation of rules under the Foreign Exchange Management Act (FEMA).
According to sources, Niranjan Hiranandani and family were beneficiaries of an offshore trust with assets exceeding USD 60 million, also named in the Pandora Papers.
Between 2006 and 2008, the Hiranandanis established at least 25 companies and a Trust in the British Virgin Islands.
According to sources, they allegedly channelled over Rs 400 crore in Foreign Direct Investments (FDI) to group companies with real estate projects in Maharashtra and Tamil Nadu, allegedly not following government guidelines.
One group entity that received FDI defaulted on loans from a bank consortium, leading to its NPA status. Subsequently, another Hiranandani group entity took over the incomplete project through Debt Recovery Tribunal (DRT) proceedings.
In March 2022, the Income Tax Department searched around 25 premises of the Hiranandani Group, spanning three cities — Mumbai, Bengaluru and Chennai. The searches, according to sources, were carried out over suspected tax evasion by the group.
Income Tax officials searched offices, sales galleries and residential premises in the three cities belonging to top officials working for the group, including the Chief Financial Officer (CFO).
During the searches, officials scanned documents, e-records of finances and sales transactions of the Hiranandani Group, sources said.
Read More: Hiranandani Group’s offices searched in Mumbai in forex violation case