ED searches premises linked to Hiranandani Group over FEMA violations

In March 2022, the Income Tax department had conducted multi-city searches at the real estate group’s premises on suspicions related to alleged tax evasion

The Enforcement Directorate (ED) on Thursday launched searches at five official and residential premises linked to the Hiranandani Group, one of Mumbai’s top real estate companies, as part of its investigation related to alleged contravention of provisions of the Foreign Exchange Management Act (FEMA), agency sources said.

Representational image.

People in the agency, however, refused to reveal details of the violations, and stated that further details will be shared only after the searches conclude.

Earlier, in March 2022, the Income Tax department had conducted multi-city searches, including in Mumbai, at the real estate group’s premises on suspicions related to alleged tax evasion.

“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,” a spokesperson from the Hiranandani Group said.

The Hiranandani Group was founded in 1978 by Niranjan Hiranandani and his brother Surendra, but the brothers recently parted ways and are said to have divided some of the realty projects undertaken by the group in the Mumbai Metropolitan Region (MMR).