MUMBAI: Enforcement Directorate (ED) summoned builder Niranjan Hiranandani and his son Darshan on Monday for their statements in alleged violation of Foreign Exchange Management Act (FEMA) rules.
On Thursday, the ED searched Niranjan Hiranandani resident along with three other places in the case. It is stated that Darshan is in Dubai and the ED had summoned him via an email.
The search action is being taken under the provisions of FEMA in connection with alleged violations of Foreign Direct Investment conditions.The ED suspects that the Hiranandani group promoters brought in Rs 400 crore of FDI over around 20 years ago for their projects in Chennai and Panvel.
However, it is alleged that the group violated the FDI norms and misused the funds for other purposes. The Panvel project company, which received FDI, failed to repay loans taken from a consortium of banks and was declared a non-performing asset (NPA).” Interestingly, another Hiranandani group entity took over the incomplete project through DRT proceedings,” said the ED.
The ED’s investigation is also focusing on the offshore trust set up by Niranjan Hiranandani and his family members. Niranjan Hiranandani and his family members were the beneficiaries of an offshore trust, which had accumulated assets of more than USD 60 million.
Hiranandanis had set up at least 25 companies and a Trust in the British Virgin Islands between 2006 and 2008, which is also under the ED scanner.
Source link