Mhada closes door on DSK investor proposal... keeps window open

Maharashtra Housing & Area Development Authority has sought more info on Phursungi land

Any hope investors caught in the DS Kulkarni financial maelstorm had of getting Maharashtra Housing & Area Development Authority (Mhada) to come to the rescue, has been put on hold.

A total of 33,000 investors were affected in the DSK fraud case. The case involved Rs 2,043 crores, of which Rs 136.77 crore was of the investors which was used to purchase a land in Phursungi. (HT FILE PHOTO)

In reply to a proposal submitted by Pune-based advocate Chandrakant Bidkar, representing a section of investors, Mhada has stated that it does not consider litigated or disputed properties. However, Mhada has asked for details about the exact amount of money invested and the losses incurred.

A total of 33,000 investors were affected in the DSK fraud case. The case involved Rs 2,043 crores, of which Rs 136.77 crore was of the investors which was used to purchase a land in Phursungi.

Ashok Patil, director, Mhada said, “We have received a proposition which is still in the initial stages. We have have demanded a detailed proposal with proper documents which will be scrutinised by Mhada. Only after this procedure, will Mhada take further action.”

In a proposal made in a city court on February 12, Bidkar suggested that Mhada construct buildings on land in Phursungi, owned by D S Kulkarni, sell houses and return money to investors.

Shrikant Shivade, DSK’s lawyer told the court on Monday, that he could not respond to the Mhada letter as he had not received it. The Maharashtra Protection Of Interest Of Depositors Act (MPID) court has scheduled the next hearing on April 8.

Bidkar demanded from the court that Shivade should not be allowed to state his plea. He requested the court to look into his proposal. He said, “I must be heard within a period of eight days.” However, the court has asked Shivade to file his say in the court.