Isle of Man rejects Niranjan Hiranandani’s appeal

MUMBAI: The Isle of Man Appellate Court has dismissed builder Niranjan Hiranandani’s appeal against an earlier lower court ruling that he and his daughter Priya Hiranandani-Vandrevala will have to answer Hirco’s allegations of fraud and other financial misconduct.

Hirco Plc, a property investment fund, is now looking to publicly try its claims of financial fraud, and recover damages in excess of 300 million pounds from the Hiranandanis.

In February last year, Hirco had sued Hiranandani and his daughter – former chairman and CEO of Hirco -- in the Isle of Man alleging they had committed fraud and other misconduct prior to resignation as chairman and CEO in 2010. Hirco Plc alleged the fraud was in connection with the company’s investment of over £350 million in the Hiranandani-sponsored township projects at Panvel and Chennai.

“Hirco expects its claims against the Hiranandanis will now be dealt with expeditiously because the lower court had noted 'the courts of the Isle of Man have a legitimate interest in ensuring that claims in fraud and claims in respect of breaches of directors’ duties... are dealt with expeditiously,” the property investment fund said in a statement.

“Hiranandani is considering the Isle of Man judgment and will not comment on it,” a Hiranandani spokesperson said in an email. Hiranandani termed Hirco's allegations as “utterly baseless, and remains confident that Hirco's claim will be rejected in its entirety, regardless of the forum in which the dispute is ultimately decided.”