Pune police to help banks auction DSK’s properties
DSK and his wife were booked for cheating and criminal breach of trust, at Shivajinagar police station on October 28, on the basis of a complaint lodged by a Kothrud resident.mumbai Updated: Jan 25, 2018 23:34 IST
The Pune police on Thursday informed the Bombay high court that they will help banks auction properties mortgaged with them by Deepak Sakharam Kulkarni’s DSK Group that a large number of people accused of cheating.
Special public prosecutor Pravin Chavan told Justice Sadhana Jadhav that the investigation officer will write to all 16 banks — which have lent Rs2,996 crores to the realty firm — to auction the properties mortgaged against these advances so that the sale proceeds can be used to repay the DSK Group investors.
Advocate Niranjan Mundargi, who represented DSK Group, said the firm will not object to such an auction and instead, will extend all cooperation for the auction to be conducted by banks. The court then directed the firm to submit a list of all their properties - encumbered or unencumbered to the investigation officer by February 2.
The high court was hearing applications filed by Kulkarni and his wife Hemanti seeking pre-arrest bail in connection with a cheating case registered against them at Pune.
During the course of hearing on their pleas, Chavan told the court that apart from the outstanding bank loans, the Group owed about Rs600 crores to 3,946 investors. The special public prosecutor also expressed apprehension about the Group’s claim that it had properties worth over Rs10,000 crores and added that “there is not a single free-hold property, except their house (house of the Group head – DSK).”
Mundargi said that Rs50 crore was being remitted from a Singapore-based foreign bank to the Bank of Baroda account of the firm and the amount will be available for distribution to the depositors in three days, after receipt of approvals from the Reserve Bank of India. Chavan said the amount will be distributed amongst investors on pro-rata basis.
DSK and his wife were booked for cheating and criminal breach of trust, at Shivajinagar police station on October 28, on the basis of a complaint lodged by a Kothrud resident. Accordingly, the couple has been booked under sections 420 (cheating and dishonestly inducing delivery of property), 406 (criminal breach of trust) and 34 (common intention) of the Indian Penal Code (IPC) and sections 3 and 4 of Maharashtra Protection of Interest of Depositors in Financial Establishments (MPID) Act, 1999.