ED raids office, other locations of Hiranandani Group over FEMA violation

The Enforcement Directorate (ED) on Thursday conducted searches at the premises of real estate major Hiranandani Group in Mumbai in connection with an alleged foreign exchange violation case, news agency PTI reported citing sources. 

The searches were conducted at four to five locations in Mumbai, including the head offices of Hiranandani Group. The probe pertains to alleged violation of rules under the Foreign Exchange Management Act (FEMA).

When contacted by Business Standard, the real estate developer declined to comment. 

The investigating agency had received some new inputs in connection with an alleged foreign exchange violation case, based on which the action was taken, a report by news18 stated. The report further stated that the action is not related to Trinamool Congress (TMC) leader Mahua Moitra.

Moitra has been in controversy since Bharatiya Janata Party MP Nishikant Dubey accused her of asking questions in the Lok Sabha to target the Adani Group and Prime Minister Narendra Modi at the behest of businessman Darshan Hiranandani in exchange for gifts. Darshan is the son of Niranjan Hiranandani, the co-founder and managing director of the Hiranandani Group. 

Earlier, in March 2022, the Income Tax (I-T) department searched around 25 premises of the Hiranandani Group, spanning three cities – Mumbai, Bengaluru, and Chennai. The searches were carried out over suspected tax evasion by the group.

During the searches, officials scanned documents, e-records of finances, and sales transactions of the Hiranandani Group.

Last year, the group said it would invest Rs 2,000 crore to develop the first phase of its luxury housing project "Empress Hill" at Hiranandani Garden at Powai. The project has 330 units and the group has already sold 150 units for Rs 1,100 crore. The company would develop a total of 500,000 square feet area in phases.