Chandan Healthcare faces ROC notice over complaint
Chandan Healthcare Limited faces a regulatory notice from the ROC regarding a complaint alleging financial mismanagement and fraud. The complaint, backed by a forensic audit, cites bogus expenditures of over ₹7.6 crore and misrepresentation in financial statements. The company has been directed to respond within a stipulated timeline to avoid action under the Companies Act, 2013.
*this image is generated using AI for illustrative purposes only.
Chandan Healthcare Limited has informed the National Stock Exchange of India that it received a notice from the Registrar of Companies (ROC), Uttar Pradesh, concerning a complaint against the company. The notice, bearing reference number TC/Comp/RKV/CHANDAN/2026/764 to 771 and dated May 20, 2026, was received by the company on June 15, 2026. The ROC has directed the company to provide para-wise clarifications and documentary proof regarding the allegations raised by the complainant, Shri Rajesh Singh Dayal, within 15 days of the notice.
The complaint alleges serious financial irregularities, including the booking of bogus expenditures amounting to ₹7,66,36,770.00 and the creation of fictitious liabilities. The forensic audit report dated January 31, 2026, prepared by M/s R.M. LALL & Co., Chartered Accountants, reportedly highlighted these discrepancies, which include sham transactions and the rerouting of funds to associates of the Chandan Group. The complainant also cited anomalies in the Red Herring Prospectus dated February 4, 2025, issued by Chandan Healthcare Limited , regarding the status of partly paid shares.
The ROC's subsequent communication dated June 9, 2026, emphasized that no reply had been received from the company and demanded a response within 10 days. The regulator warned that failure to comply would result in necessary action against the company and its directors under the provisions of the Companies Act, 2013.
Key Financial Irregularities Cited
The complaint details several specific financial manipulations uncovered during the forensic investigation. The alleged bogus expenditures were recorded under various heads, including professional fees, salary, and performance bonuses, despite the company being in a pre-operative construction phase.
| Expenditure Head | Amount (₹) |
|---|---|
| Professional fee | 3,53,02,059.00 |
| Salary | 1,90,98,703.00 |
| Performance Bonus | 1,07,18,064.00 |
| HRA | 74,06,957.00 |
| Traveling Expenses | 35,13,642.00 |
| Other heads | 5,03,345.00 |
Further allegations include the misrepresentation of funds received from Chandan Group entities as secured borrowings rather than call money or capital contributions. The notice also points to the issuance of equity shares to Chandan Group entities without the full realization of allotment money, violating Rule 14(5) of the Companies (Prospectus and Allotment of Securities) Rules, 2014.
Chandan Healthcare Limited stated in its filing that it is in the process of submitting its response and clarifications along with supporting documents to the concerned authority. The company assured that it would extend full cooperation in the matter. The enclosed notice was submitted to the exchange for information and record.
Historical Stock Returns for Chandan Healthcare
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.11% | -5.89% | -12.10% | -25.63% | -1.70% | +21.69% |
What specific penalties or enforcement actions is the Registrar of Companies likely to pursue if Chandan Healthcare fails to meet the new compliance deadline?
How will the allegations of fictitious liabilities and misrepresentation in the Red Herring Prospectus impact investor confidence and the company's ability to raise future capital?
Could the findings of the forensic audit trigger a broader investigation by other regulatory bodies, such as the Securities and Exchange Board of India (SEBI)?
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