The dispute between Hirco Plc., the Isle of Man-based close-ended investment company that invested in Hiranandani’s real estate projects in India, and real estate developer Niranjan Hiranandani, has taken a fresh turn with Hirco deciding to write down its 350 million pound sterling investment in Hiranandani-sponsored projects at Panvel (near Mumbai) and Chennai to nil, and Mr. Hiranandani blaming Hirco for the mess.

In a letter to shareholders, Hirco Chairman John Chapman said: 'The board has decided to write down…Consequently at the end of the financial year, we are reporting a loss of 191 million pound sterling. We decided to write down the company’s assets to nil primarily because Panvel and Chennai residential projects have now been foreclosed and are being sold at auction.'

'It has been reported in the Indian media that Niranjan Hiranandani, the company’s former chairman, and entities associated with him have already bought the Chennai asset and will soon buy the Panvel assets,' he said.