DSK, wife cooperating with Pune police to refund deposits, company assures SEBI
In his reply dated October 31, company secretary Rohit Purandar acknowledged that the Economic Offences Wing (EOW), Pune, is investigating a case filed against the company’s chairman and director DS Kulkarni, president Hemanti Kulkarni and the chief financial officer “for non-refund of deposits accepted in their private concerns.”
Replying to a notice issued by the Securities and Exchange Board of India (SEBI) on allegations of an alleged fraud committed by the DS Kulkarni Developers Limited (DSKDL), the company has sought to assure SEBI that it is cooperating with the Pune Police in resolving cases relating to non-refund of deposits to investors.
In his reply dated October 31, company secretary Rohit Purandar acknowledged that the Economic Offences Wing (EOW), Pune, is investigating a case filed against the company’s chairman and director DS Kulkarni, president Hemanti Kulkarni and the chief financial officer “for non-refund of deposits accepted in their private concerns.”
The company said that DS Kulkarni and his wife Hemanti “are cooperating with the police in resolving the complaint.”
DSKDL wrote to SEBI after the latter sought a clarification with regards to a news item titled ‘DSK Defaults: Pune Police finally register FIR against DS Kulkarni and his wife Hemanti.’
When asked about the company’s deadline to start clearing dues to investors, the company’s CEO and DSK’s son Shirish Kulkarni said, “I am not sure about the timeline but it’s at least two-three weeks.”
Meanwhile RTI activist Vijay Kumbhar who had taken the lead to fight on behalf of the investors, said, “ Kulkarni was supposed to appear before the EOW on Wednesday but he has not yet reached the agency.”
“We have been advised not to speak to media till the investigations are over. Hence, I cannot comment,” said Kulkarni.
Kumbhar said, “As per the law, DS Kulkarni Developers is mandated to update the Stock Exchanges about every price sensitive information. However, there is no update from the company on BSE or NSE websites.”
It was last Saturday that DS Kulkarni and his wife Hemanti were booked for cheating and criminal breach of trust at Shivajinagar police station. The case was filed by Jitendra Narayan Mulekar (65), a resident of Kothrud, who alleged that the company run by the two had cheated him of ₹4.40 lakh since February this year. The Kulkarni couple was booked under Sections 420 (cheating and dishonestly inducing delivery of property), 406 (criminal breach of trust) and 34 (common intention) of Indian Penal Code (IPC) and Sections 3 and 4 of Maharashtra Protection of Interest of Depositors (MPID) Act.
The listed company has been in the midst of a crisis following slowdown in the real estate market and its adverse impact on the group, which has repeatedly defaulted on payments due to an estimated 8,000 small investors and FD holders.
Kulkarni, in an interview to HT had blamed the recession coupled with an accident he met last year for negatively impacting his business.