The Enforcement Directorate (ED) has summoned Niranjan Hiranandani and his Dubai-based son Darshan Hiranandani – the promoters of prominent Mumbai-based real estate developer Hiranandani Group, for questioning in a foreign exchange violation case on Monday. News agency PTI, citing sources, reported that the father-son duo has been asked to depose at the central agency’s office in Mumbai. However, they may choose to submit their primary responses through an authorised representative.

The summons came as the probe agency searched four premises linked to the Hiranandani Group and its group entities under the Foreign Exchange Management Act (FEMA) provisions on Thursday.

What is the case against the Hiranandanis?

The ED officials are probing some of the group entities’ alleged receipt of funds of over ₹400 crore via the Foreign Direct Investment (FDI) route for the two housing projects in Panvel and Chennai. Reportedly, one of the group entities that had received the FDI allegedly did not repay loans taken from a consortium of banks and was declared a Non-Performing Asset. Later, the project was taken over by another Hiranandani group entity in the subsequent Debt Recovery Tribunal’s proceedings.

Along with this, the probe agency is also looking into charges over beneficiaries of a British Virgin Islands (BVI)-based trust allegedly linked to the Hiranandani Group promoters. Reportedly, the Hiranandanis had allegedly set up at least 25 companies and a trust in the British Virgin Islands between 2006 and 2008.

Meanwhile, the ED has clarified that the probe is not linked to another FEMA investigation being conducted against TMC leader Mahua Moitra, who was expelled as a Lok Sabha MP in December last year.

Hiranandani group on ED’s FEMA probe, searches

Reacting to the searches over the probe agency’s FEMA probe and searches on Thursday, Hiranandani Group assured to co-operate with the investigation.

“We have extended full cooperation to the department by facilitating all the relevant information and clarification sought by them. Since the inquiry pertains to a 15-year-old development, it took time to dig out old records…The group understands that ED is satisfied that there were no FEMA violations. The group will remain cooperative and law-abiding,” an official spokesperson of the Hiranandani Group said.