ED Investigating British Virgin Island Entities Linked to Hiranandani Group

The Hiranandani Group is currently under investigation by the Enforcement Directorate (ED) in connection with 25 British Virgin Island-based companies and a trust established by the Mumbai-based realtor, according to sources familiar with the matter.

The ED, which is responsible for probing financial crimes such as money laundering, conducted searches at the realtor’s premises on February 22, alleging violations of the Foreign Exchange Management Act (FEMA) rules.

Sources revealed that the British Virgin Island entities were established between 2006 and 2008, with the investigation focusing on the relationship between these offshore entities and funds brought into India through the Foreign Direct Investment (FDI) route by the company.

Additionally, the agency is scrutinizing a group company that received foreign direct investment but defaulted on its loans in India.

In response to queries, the Hiranandani Group stated that they have provided full cooperation to the ED, furnishing all relevant information sought by the department. They clarified that due to the inquiry’s focus on historical developments spanning 15 years, retrieving old records took time.

“The group understands that ED is satisfied that there were no FEMA violations. The group will remain cooperative and law-abiding,” the company affirmed in an official statement issued late on February 22.

In October, Darshan Hiranandani, son of Niranjan Hiranandani, the founder of the Hiranandani Group, was embroiled in a controversy dubbed the “cash-for-query scandal” involving Trinamool Congress leader Mahua Maitra.

BJP MP Nishikant Dubey alleged in a letter to the Lok Sabha Speaker that Maitra, then a member of the House, received gifts and cash in exchange for raising queries in Parliament to safeguard businessman Darshan Hiranandani’s interests.

Hiranandani admitted to using Moitra’s parliamentary login credentials to pose questions from the Centre. Moitra was subsequently expelled from the House.

Founded in 1978 by Niranjan Hiranandani and Surendra Hiranandani, the Hiranandani Group has developed and delivered approximately 48 million square feet of real estate, comprising 35 million square feet of residential and nearly 14 million square feet of commercial and retail space in Powai, Panvel, Thane (all part of the Mumbai Metropolitan Region), Chennai, Ahmedabad, and Pune.

The group also possesses substantial land holdings, including 250 acres in Alibaug, 500 acres in Khandala, and 400 acres in Chennai.