ED summons Hiranandani Group promoters in forex exchange violation case
The Enforcement Directorate (ED) has summoned Niranjan Hiranandani and his son, Darshan Hiranandani, the promoters of Mumbai-based real estate developer Hiranandani Group, for questioning on Monday. The father-son duo have been asked to appear at the ED's Mumbai office in connection with a foreign exchange violation case. However, they may choose to submit their initial responses through an authorized representative. Darshan was informed via email as he lives in Dubai, people aware of the matter told the Economic Times.
ED searches 4 premises of Hiranandani Group
The summons was issued days after the ED searched four Hiranandani Group premises in and around Mumbai under provisions of the Foreign Exchange Management Act (FEMA). As per the case, Niranjan and his family members were beneficiaries of an offshore trust with assets totaling over $60 million. The group was also named in the Pandora Papers, a collection of 11.9 million secret documents containing information about the ownership of offshore entities used by the ultra-rich to handle their money flows.
Darshan set up at least 25 companies between 2006-2008
The Pandora Papers also showed that Darshan set up at least 25 companies and a trust in the British Virgin Islands between 2006 and 2008. At the time the papers were leaked, Darshan said, "It's my personal trust that has built up assets since 2007. Any money routed...is...sent by me." Reports also claimed they allegedly channeled over Rs. 400 crore in foreign direct investment (FDI) to group companies with real estate projects in Maharashtra and Tamil Nadu, violating government guidelines.
Case unrelated to another FEMA investigation involving TMC leader
The ED probe is, however, unrelated to another FEMA investigation that is being carried out against Trinamool Congress leader Mahua Moitra. Bharatiya Janata Party MP Nishikant Dubey had accused Moitra of targeting the Adani Group and Prime Minister Narendra Modi on behalf of Darshan in exchange for monetary gains and gifts. Moitra has denied any wrongdoing, claiming she was targeted because she had raised questions about the Adani Group's deals. She was expelled from Lok Sabha in December.