DSK, wife sent to seven days police custody
The Kulkarnis were arrested from a hotel room in Delhi on Saturdaypune Updated: Feb 18, 2018 15:15 IST
In a dramatic development, prominent Pune-based builder DS Kulkarni andhis wife Hemanti Kulkarni were arrested in Delhi by the Economic Offences Wing (EOW) of the Pune police a day after the Bombay High Court refused to extend the interim anticipatory bail.
The two were brought to Pune and produced in the court of additional sessions judge JT Utpat who remanded them in seven days police custody. Dressed in a blue t-shirt with pink stripes, DSK and his wife looked tense and remained silent as they entered the courtroom. The duo stood at the back of the court as the proceedings progressed. The two were taken to separate police lock-ups where they will spend the next seven days.
The Kulkarnis were arrested from a hotel room in Delhi in the small hours of Saturday. Chairman of DS Kulkarni Developers Ltd (DSKDL), DSK, as he is popularly known, was facing charges of cheating more than 2,000 investors who had put their money in DSK’s construction business through fixed deposits. Complaints of failure of payment started pouring in by the middle of 2017.
The DSK couple was booked under the Indian Penal Code Sections 420 (cheating), 406 (criminal breach of trust), 34 (common intention) and Sections 3 and 4 of the Maharashtra Protection of Interest of Depositors (MPID) Act. The case was registered on October 28, 2017 at the Shivajinagar police station in Pune after which the EOW (Economic Offences Wing) took over the case.
During the seven days in police custody, the two will be allowed to meet each other at the police commissioner’s office for an hour everyday.
Following the withdrawal of interim protection by the high court, the city police had dispatched teams to various places to track DSK.
Special Public Prosecutor Pravin Chavan said one of the main reasons for the police custody was to probe into loans of ₹2,892 crore from various banks, public deposits and investments of ₹1,153.76 crore, and the advances paid by property buyers. “We need to investigate whether any of the amount was used for personal gains,” Chavan said.
He added that the police have not yet found the investment documents of the investors.
“Ideally, a customer has one identification code in a bank. But Hemanti Kulkarni has three identification codes with Bank of Maharashtra. Police can prove it,” he added. “Deposits were accepted from six different companies owned by DSK,” said advocate Chavan.
The defence lawyer, advocate Shrikant Shivade did not contest the prosecution’s demand for police custody. He said, the refund of investor deposits will begin next week.
Around a month-and-a-half ago, DSK had assured the court that they would deposit ₹50 crore within a fortnight. When they failed to do so, on February 14, the court had extended their interim anticipatory bail after Buldhana Urban Multistate Co-operative Credit Society submitted to the court claiming to have given ₹12 crore to DSK in lieu of his property.
However, the next day the EOW submitted to the court that the land in question was already mortgaged to the Bank of Maharashtra.
Advocate Shivade argued that the police was not allowing the sale of property which was hampering the process of returning money to the investors. However, the special public prosecutor argued that the duo should have started the sale much before a case was filed and the police was involved.
First Published: Feb 18, 2018 15:14 IST