DeMon: Firm deposits Rs 240 crore, under lens

HYDERABAD: Yet another Hyderabad-based company that is being probed by the Serious

Fraud

Investigation Office (SFIO) regarding its post demonetisation deposits and withdrawals has turned out to be a ghost firm and does not exist in its registered address.

City-based Royaloak Steels Private Limited is being jointly probed by SFIO and the office of the regional director of the ministry of corporate affairs (MCA) to look into Rs 240 crore deposits and withdrawals made by the company after demonetisation of high-value currency in November 2016.

When TOI verified the registered address at 406B,

United Avenue

South End apartments at

Ameerpet

, it was inhabited by a family and there was no trace of the company. In all, three companies from AP and Telangana figure in the 18 companies that deposited more than Rs 100 crore and above and withdrew almost the same amounts from their bank accounts in an exceptional manner post demonetization. SFIO is probing all these 18 companies.

‘Probe on, directors of Royaloak Steels asked to submit documents’

Sources in MCA said the investigation was on and directors of Royaloak Steels were asked to submit the documents. The registered address is owned by one Suresh Chukkapalli, chairman of Phoenix Group. Incidentally, on July 17, 2018, B Sridhar Rao, vice president (finance and taxation) of Phoneix Group, wrote letters to directors of Royaloak Steels, Kunal Jayant Kansilwal of Juhu, Mumbai and Anand Anilkumar Ranka of Jabalpur, asking them to change their registered address.

In the letter, Sridhar Rao said: “The owner of door number 406 B of United Avenue Apartments, Ameerpet, wants to clarify that we are the owner and in possession of the premises. ROC records are showing this as the registered address of Royaloak Steels. We are requesting you to kindly shift the registered office from Hyderabad to Mumbai.” However, the Phoenix Group said it has nothing to do with Royaloak Steels.

A resident of United Avenue Apartments, who did not want to be quoted, told TOI: “Our relatives are staying in 406 B. There is no company there. We haven’t seen any company operating from here for the past many years.”

According to ROC records, Royaloak Steels was incorporated in 2003 and is into manufacturing of basic iron and steel. The company has a motor vehicle valued at Rs 30 lakh hypothecated to NKGSB Cooperative Bank in Mumbai.

Hyderabad ROC Ramesh Chandra Mishra said, “Not operating from the registered address is a compoundable offence under law. We will take action after we get the report of investigation of the agencies which are probing Dreamline (Nityank Infrapower), Royaloak and other companies.” An email sent to Royaloak and Dreamline directors and companies didn’t evoke a response. SFIO is also probing Prajashakti Printers and Publishers, which deposited Rs 127.71 crore in banks post demonetisation.