DS Kulkarni group investors want ED probe into alleged payments by firm to money lenders, brokers
PUNE Investors in the DS Kulkarni group of companies have demanded that the Enforcement Directorate (ED) investigate alleged payments made by DSK firms to various money lenders and brokers.
A consortium comprising Ashdan Properties, Classic Promoters and Builders and Atul Builders will take over the debt-ridden group through the insolvency process.
DS Kulkarni Developers Limited (DSKDL) owners are accused of cheating more than 30,000 investors of more than ₹2,000 crore. The case is being investigated by the economic offences wing (EOW) of the Pune police.
DSK investor Sanjay Ashrit said, “All those who have invested in DSKDL properties stand to gain due to the latest development. However, other investors like us who invested in DSK shell companies will also get back their money provided the case is handed over to the Enforcement Directorate. We are very positive about the entire process and investors will get their money back.”
Complainant Jitendra Mulekar, who had lodged an FIR against the DSK group, said, “Currently only DSKDL investors will get back their money while those investors who have invested in the shell companies will have to wait for a while. We want the refunds to be initiated at the earliest.”
Investor Manjusha Kulkarni said, “We want the ED to probe the transfer of funds to brokers and money lenders from DSK. Through ED the money can be retrieved and the investors can be refunded in real time.”
DSK’s lawyer advocate Ashish Patankar said, “The plan put forth by the consortium has been duly accepted and is awaiting NCALT approval subject to no objections raised either by the committee of creditors or by corporate debtors.”
Manoj Kumar Agarwal, a resolution professional, on August 13 informed the listing compliance department of the Bombay Stock Exchange (BSE) and the National Stock Exchange about the approval of the resolution plan involving DS Kulkarni Developers.
Agrawal in his letter stated: “The Committee of Creditors (CoC) has approved the resolution plan submitted by Ashdan Properties Pvt Ltd, Classic Promoters & Builders Pvt Ltd and Atul Builders, with a requisite majority of the voting share as per the Insolvency and Bankruptcy Code (IBC), 2016. You are requested to take the above information on record.”
There were three applications to acquire DS Kulkarni Developers through the insolvency process. Besides the Ashdan-Classic-Atul consortium, Mantra Properties and Developers and a trio of Hemendra Shah, Kanhaiyalal Matani and Ghyanshyam Sukhwani had also submitted a bid.
In September 2019, the National Company Law Tribunal (NCLT), Mumbai bench, ordered the commencement of corporate insolvency resolution process (CIRP) related to the real estate group under the provisions of the Insolvency and Bankruptcy Code, 2016, on an application filed by Bank of Maharashtra.
One of the main accused, Hemanthi Kulkarni, the wife of DS Kulkarni, was granted bail by the court after over four years. DS Kulkarni, his son Shirish Kulkarni, and others are still in jail.