Investor fraud case: Court rejects DS Kulkarni, wife’s bail plea

The prosecution on Thursday had argued that the scope of fraudulent dealings by DSK and his associates go much beyond the fraud and has affected banks, homebuyers and holders of the non-convertible debentures (NCDs) floated by his company.

Jailed real estate developer DS Kulkarni, also known as DSK, and his wife Hemanti will have to spend some more time in Yerwada Central Prison as special judge JT Utpat rejected their bail plea on Friday afternoon. Utpat’s order came after both the defence and prosecution had completed their arguments and the court had reserved its order for Friday. The court has extended their custodial remand till May 10.

DS Kulkarni (DSK) with his wife Hemanti Kulkarni and son Shirish Kulkarni during a press conference at his office on JM road in Pune. This was his first public interaction since over 2,000 investors moved the economic offences wing (EOW) against the builder.(HT FILE PHOTO)

DSK’s counsel advocate Chinmay Inamdar said, “We have not received the order copy and will seek justice from the high court once we go through the order. We had given our objection that Section 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the Indian Penal Code (IPC) is not applicable in the case. We will have to go through the observations the court has made in this regard.”

The prosecution on Thursday had argued that the scope of fraudulent dealings by DSK and his associates go much beyond the fraud and has affected banks, homebuyers and holders of the non-convertible debentures (NCDs) floated by his company. 

The public prosecutor argued before the special judge Utpat that DSK has failed to deposit ₹50 crore with the government despite being given leniency by the court and has misled the court time to time. If DSK is granted bail then he can do anything and, hence, the bail application must be rejected outright. There is strong possibility that DSK might flee the country if granted bail, the prosecution stated. 

Judge Utpat had reserved the order for Friday. DSK and Hemanti, lodged in the Yerwada jail under judicial custody, were produced via video conferencing mode.