DeMon: Hyderabad company with ghost address deposited Rs 3,178 crore

HYDERABAD: A city-based company that deposited and withdrew Rs 3,178 crore in banks post-demonetisation and is being probed by the Serious Fraud Investigation Office (SFIO) has a ghost registered address at Erragadda in Hyderabad.

Ground verification by TOI found the company, Dreamline Manpower Solutions Private Limited (which later changed its name to Nityank Infrapower and Multiventures Private Limited), is not operational from its registered address with the ministry of corporate affairs —Door No. 8-4-548/1 near Gokul Theatre, Erragadda.

The building, N Siddappa Nilayam, is a residential premises and neighbours say they don’t know about the whereabouts of the company.

Soon after demonetisation, ministry of corporate affairs (MCA) on November 15, 2017, ordered a probe by SFIO into 18 companies, including Dreamline Manpower Solutions. “According to information received from banks, the Centre has noticed that 18 companies deposited Rs 100 crore and above. And almost the same amount was withdrawn from their bank accounts in an exceptional manner after demonetisation.”

‘Deposits, withdrawals bona fide’
Serious Fraud Investigation Office (SIFO) appointed two inspectors each to investigate each company, one from SFIO and one from Register of Companies of AP and Telangana.

On March 23, 2018, MCA in response to a question in LS, revealed that Dreamline Manpower Solutions (now Nityank Infrapower and Multiventures Limited) is among the companies facing probe. According to ROC records, company’s registered address is still the same at Erragadda. The company was incorporated in February 2012 and started taking loans in June 2017 and interestingly on November 14, 2017, the day before MCA issued order for SFIO probe, it changed the name from Dreamline to Nityank. The company submitted its returns for 2017-2018 too. Suraj Kumar Yadav and Hitesh Manohar Ingale are named directors. The company claims activity in tax consultancy, legal services, book-keeping, market research and auditing and public opinion polling. According to records, the company has borrowings of Rs 1,700 crore, mostly from Yes Bank.

Jai Prakash Goyal, chartered accountant, has two firms registered in the same address. The companies, Assertive Corporate Services LLP and Assertive Business Solutions Private Limited, were incorporated in 2014 and 2011 respectively. Interestingly, the two companies, active on ROC, do not exist at the Erragadda address. Goyal told TOI, “Initially, I used to operate from the Erragadda building as an audit firm. Five to six years ago, an auditor from Mumbai asked me to submit incorporation details of Dreamline. When they asked, I gave them my address for registration. But the company was never operational from here. I moved to Mumbai, but I didn’t change my registered address. I think they operate from Mumbai too, and they haven’t changed their registered address.”

An official dealing with legal affairs of the company told TOI: “We are in touch with directors of Nityank Infrapower. They have filed responses to SFIO probe. They have established that deposits and withdrawals are bona fide.”