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Buldhana Urban Bank to the rescue: To loan Rs.100 crore to DSK Group

The Bombay high court has now fixed a final hearing in the case on February 22.

pune Updated: Feb 14, 2018 15:00 IST
Buldhana Urban Bank,dsk,group
DS Kulkarni (DSK) at his office on JM road in Pune.(HT File Photo)

Beleaguered Pune real estate developer DS Kulkarni received some breathing room in the debt scandal engulfing his DSK Group, as the Buldhana Urban Bank has come forward with a rescue plan.

The bank filed its say before the Bombay high court on Tuesday, stating that it was willing to extend a Rs 100-crore loan to the DSK Group. It also expressed its willingness to buy Kulkarni-owned properties, that are free of any encumbrances, worth Rs 12 crore .

Justice Sadhana Jadhav observed that, as decided, once money is deposited in accounts by the Buldhana Urban Bank, the state government must prepare a list of investors in order of the most needy, in advance, and promptly refund them.

DSK has submitted to the court that he has to pay Rs 232 crore to investors.

When the day’s proceedings began in court, DSK failed to deposit Rs 50 crore before the court, but before the court could say anything, DSK moved the Buldhana Urban Bank proposal and informed the judge that the bank has agreed to buy properties owned by him worth Rs 12 crore.

DSK then presented documents of properties worth Rs 12 crore which are not mortgaged. The high court then directed the government to start auctions, making a list of needy investors to receive funds at the earliest.

The court gave further directions to the bank that a consent letter needs to be signed by all bank directors as regards the DSK proposal, which must then be submitted before the court through the economic offences wing (EOW) by February 17.

Responding to a question asked after the hearing, DS Kulkarni said, “Crowdfunding has sent a positive signal to society and people are once again reposing their faith in me. Buldhana Urban Bank has come forward and will deposit a Rs 100 crore loan in our accounts. They are ready to buy my property worth Rs 12 crore in the first leg of the transaction.”

First Published: Feb 14, 2018 14:59 IST