Kersi Gherda, former director of the UK-registered Hirco PLC, criticised directors of its successor company Hirco Isle of Man for bringing charges of alleged fraud against Mumbai-based Indian townships developer Niranjan Hiranandani (the original promoter of Hirco PLC) and his London-based daughter Priya Hiranandani-Vandrevala.
Gherda also held out an assurance to consumers in the connected housing or township projects being developed by the Hiranandanis in India that they will not suffer.
The Hiranandanis decided to buy the ongoing projects from the banks financing these after they foreclosed on their facilities, following Hirco Isle of Man's refusal to fund the ventures. Gherda stated: "The Hiranandanis have bought the Chennai project (from HDFC Bank) and I believe (they) will do the same with the Panvel project to ensure they are completed and consumers do not suffer."
A spokesperson for Hiranandani confirmed that the Chennai project has been purchased on the auction done by HDFC to protect the interests of consumers.
Speaking to RAY, Gherda, an Order of the British Empire (OBE) awardee in Britain, said: "The case against Niranjan and Priya are baseless."
A group of people now controlling Hirco (renamed Hirco Isle of Man) filed a suit in a Isle of Man court against the Hiranandanis, claiming the latter knew the projects sold to Hirco would take longer than they had declared to develop, but had concealed this from investors. Stories have appeared in sections of the British and Indian press against the Hiranandanis, quoting the litigants.
Gherda, who has inside knowledge of Hirco's affairs, having been its director and also a director of companies implementing its projects in India, rebutted: "Neither they nor anyone else could have predicted the delay caused by the global economic crisis of 2008 and the consequent economic slowdown in India."
He revealed: "There was a totally independent exercise carried out by JLL, Cushman, HSBC, Bear Sterns, KPMG and other consultants to vet the projects. The investment agreement was approved by an investment committee of independent directors."
Gherda further said, "New shareholders of Hirco Isle of Man, including activist hedge funds, presumably put pressure on its directors to file a case against the Hiranandanis," and accused them of "spreading false information to push the (Hiranandani) family into a settlement to their advantage". He added: "Their strategy will not work as the family has taken a stand to clear their name by winning in court."
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