Hirco keeps up pressure on Hiranandani

MUMBAI: Investment company Hirco Plc on Monday fired a fresh salvo against developer Niranjan Hiranandani and his family, threatening to notify law enforcement authorities over two township projects in Panvel and Chennai.
The company had raised Rs 3,000 crore from global investors in 2006 for the two projects controlled by the Hiranandanis but is yet to receive any returns on its investments.
Hirco said it found that cash collections for Panvel and Chennai totalled about 192 million pounds (under Rs 2,000 crore) till November. The Chennai and Panvel assets had a value of 556 million pounds (around Rs 5,500 crore). The secured assets debts of some or all of these assets come to 101 million pounds (Rs 1,000 crore).
"Hirco Plc has, therefore, written to the directors of the Indian project companies, demanding an explanation as to how and to whom the cash collections were disbursed and why the companies were unable to repay the debts," Hirco said in a statement on Monday.
Hirco also asked for a forensic accounting examination of the books and records of the Indian project companies.
"Hirco Plc will also continue to pursue redress against Niranjan Hiranandani and Priya Hiranandani for fraud and other wrongdoing through the ongoing litigation and arbitration proceedings,'' it said.
A spokesperson of Hiranandani Palace Gardens Chennai said: "The present references from Hirco Plc appear to be a ploy in its inability to infuse fresh capital in project companies for the development and future plans of action which is sought by the project companies... As far as the utilisation of funds is concerned, whether received from equity infusion, loans from Indian banks/funding agencies or customer contribution, the proper utilisation by the project companies is already reflected in the audited accounts of the companies ..."
Last month, the Bombay HC appointed a court receiver to manage the property of Hiranandani Palace Gardens, owner of the Chennai residential assets. The court did so on the application of Tata Capital Financial Services after Hiranandani Palace Gardens defaulted on a Rs 76 crore loan. The court directed Hiranandani Palace Gardens to file an affidavit of disclosure detailing all of that company's unencumbered assets. Tata Capital alleged in support of its winding-up petition that Hiranandani Palace Gardens had misrepresented facts to obtain the loan.
A Hiranandani Palace Gardens spokesperson said: "The specific reference is not for the whole project but for the part of the development of Palace Gardens Chennai which is linked to the loan from Tata Capital. No residential or commercial units which are under construction, are part of this land. As far as the loan repayment with Tata is concerned, efforts are underway to resolve it amicably."