Economic Offences Wing of Pune Police freezes 70 bank accounts of DSK Group
Information from DRI, ED and SEBI sought on transfer of funds abroadUpdated: Nov 04, 2017 00:08 IST
The Economic Offences Wing (EOW) of Pune Police has frozen 70 bank accounts of DS Kulkarni Developers Ltd (DSKDL) and other group companies as a part of its investigations into allegations of fraud and non-payment of dues to investors.
It has also sought information from the Directorate of Revenue Intelligence (DRI), Enforcement Directorate (ED) and Securities and Exchange Board of India (SEBI) on possible illegal transfer of funds abroad by prominent Pune businessman DS Kulkarni who is the chairman of DSKDL.
Speaking to Hindustan Times, Kulkarni said that he has applied for anticipatory bail. “We owe around ₹600 crores to our investors and will make the payments as and when we get the funds,” he said, adding that the group made payments of ₹200- ₹250 crores to the investors last year.
The businessman, who is famous for his rags-to-riches story, said that he has filed a writ in the court which detailed the paying capacity of the group comprising details of land parcels and real estate holdings.
Deputy commissioner of police (cyber crime) Sudhir Hiremath told Hindustan Times that the Pune Police have written to ED, DRI and SEBI and have requested them to ascertain if DSK has sent money outside the country.
“As many as 70 bank accounts of the company have been frozen by the EOW,” he said.
The EOW has added IPC Sections 120 B (criminal conspiracy), Section 409 (criminal breach of trust by public servant, or by banker, merchant or agent).
The agency has also added a section of Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The EOW has sought the audited balance sheets of DSKDL and group companies from the Registrar of Companies for its investigations.
On Thursday, searches were conducted at five business and residential properties of the 68-year-old businessman. Till Friday, 599 people had approached EOW for filing cases involving payment defaults on fixed deposits (FD) with DSK.
Last week, a case of cheating and breach of trust was registered at Shivajinagar police station against DS Kulkarni and his wife, Hemanti Deepak Kulkarni.