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Overpricing keeps people away from DSK’s plot auction in Pune

The Central Bank of India in its public notice published in newspapers had said that the auction will take place on March 6 with the reserve price for the land being ₹66.39 crores

pune Updated: Mar 09, 2018 15:46 IST
HT Correspondent
HT Correspondent
Hindustan Times, Pune
Pune,Maharashtra,DSK
D.S. Kulkarni, CMD of DSK Developers Ltd and his wife is accused of duping over 2,000 investors, who put their money in their construction business through fixed deposits, to the tune of ₹230 crore . (HT PHOTO )

The auction process initiated by Central Bank of India to sell the land owned by embattled real estate developer DS Kulkarni, also known as DSK, did not get any response. While the bank officials refused to comment or confirm, sources said that the property had no bidders as it was overpriced.

“There is not much interest shown by the bidders as the property is overpriced,” said RTI activist Vijay Kumbhar, who has been helping investors to pursue their cases against DSK.

The Central Bank of India in its public notice published in newspapers had said that the auction will take place on March 6 with the reserve price for the land being ₹66.39 crores. The bank’s action has come after the group controlled by Kulkarni turned defaulter to money taken as loan by mortgaging the land parcel at Phursungi.

In its notice, the Central Bank of India has said, “Since the account borrower (DSK Global Education and Research Limited) has failed to repay loan amount and interest on it, the bank has decided to sale the property on as is where is basis under Section 13(4) and 9(1) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.” The land put up for auction by the bank is mostly unused, said the bank officials.

The bank has named DSK’s wife Hemanti as director of the firm on which the loan has been taken. In its notice, the bank has asked “interested parties” to submit their bids till March 7. The bids will be opened on March 8 at 11:30 am. The bank has already taken the possession of land on November 6 last year, said the notice.

Following multiple police complaints pertaining to cheating investors, DSK along Hemanti were arrested from Delhi by Economic Offences Wing of Pune police. The builder was later shifted to Deenanath hospital following complaints of neurological disorder.

Earlier in November last year, the bank took possession of another land parcel owned by the DSK group in Phursungi after it turned defaulter. In its earlier notice published in November, the bank said that the amount owed to the bank by DSK owned group together with interest as on April 2017, stands at ₹82,00,39,081.

DSK’s arrest has come after the Bombay high court on February 16 vacated an interim protection offered to the duo, restraining police from arresting them. The husband and wife duo is accused of duping over 2,000 investors, who put their money in their construction business through fixed deposits, to the tune of ₹230 crore

First Published: Mar 09, 2018 15:46 IST