ED summons Niranjan Hiranandani, Dubai-based son on Monday: Report

Days after searching his premises, the Directorate of Enforcement (ED) has summoned Niranjan Hiranandani and his son Darshan Hiranandani in a forex violation case, The Economic Times reported on Sunday. It asked them to appear at the agency's south Mumbai office on Monday. Darshan Hiranandani was informed by email as he is a non-resident Indian (NRI) and lives in Dubai, people aware of the matter told ET.

Niranjan Hiranandani is the co-founder and managing director of real estate major Hiranandani Group. 

On Thursday, the ED conducted searches at the premises of 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.

Sources told India Today that Niranjan Hiranandani and his family were beneficiaries of an offshore trust with assets exceeding $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.

(With inputs from Divyesh Singh)