Land sale, foreign funds may save debt-ridden Pune-based DSK Group
All dues amounting to Rs.485 crore would be cleared by January, 2018, said the Deepak Kulkarni, chairman of the grouppune Updated: Aug 09, 2017 09:17 IST
Deepak Sakharam Kulkarni, prominent as the rags-to-riches Pune builder ‘DS Kulkarni’ is in the final stages of negotiating the sale of two land parcels of unspecified size and location to tide over the financial crisis he is plagued with.
Speaking to Hindustan Times on Tuesday, the chairman and managing director of DSK Group disclosed that he was also in talks with some foreign investors to raise funds for the group. He is now banking on this foreign investment and the sale of land to tide over the crisis and clear dues amounting to Rs.485 crore. All dues would be cleared by January, 2018, he said.
“We are trying to raise money from the foreign investors. The talks are in the last stage. We have also put up two of our land stocks on sale to raise money. We are taking every effort to return the depositors’ money,” he said.
The publicly listed company has been in the midst of a crisis following the slowdown in the real estate market and its adverse impact on an ambitious project of the group. This is the 300-acre ‘Dream City’ township project of 12,000 ultra-luxurious apartments near Loni Kalbour on the outskirts of Pune city. The builder also suffered injuries in a serious road accident in May 2016, which, he said, had an impact on the business. He said the group faced a number of problems in 2016. It currently has 21 projects of which 13 have been put on hold due to financial problems.
Over the past few weeks, depositors, mostly senior citizens, have been raising a hue and cry against the DSK group for defaulting on the interest payment of a fixed deposit (FD) scheme that has been running for the past 35 years. The company had raised Rs.485 crore through FDs from the middle class.
The sudden crisis that has plagued the DSK group has shocked many as DSK saw an inspiring and meteoric rise. Coming from a lower middle class family, Kulkarni started from scratch and built his real estate empire through ingenuity and business enterprise. The group’s real estate projects are spread over various cities including Pune, Mumbai and abroad.
The company is now facing allegations of repeatedly defaulting on payments since January. Investors have not only held public protests but have also threatened to take legal action. “We will soon form a core committee to take the matter further,” said Anil Karmarkar, a long time investor in the group.
Karmarkar, who has been spearheading the agitation, said many investors are retired middle class citizens.