India, Maharashtra, vijay kumbhar, News, Governance, RTI, Transparency, Civic Issues, Real Estate: D S Kulkarni

Showing posts with label D S Kulkarni. Show all posts

Tuesday, October 27, 2020

DSK Groups fallout started way back in 2004 says Forensic Audit Report

Three years back on this day victims filed FIR against D S Kulkarni and others. Once upon time D S Kulkarni was blue eyed boy of investors and bankers. DS Kulkarni blames demonetization and recession for his fallout. However forensic audit report in Kolhapur case submitted by S. M. Sonalkar and Co alleges that DSK’s fallout was started long back in 2004 – 2005 itself. The report throws a light on several illegalities of banks, arm length dealings, early warning Signals of financial illness of DSK group companies. The report also alleges that banks excessive illegal lending, obtaining illegal Public Deposits, investing in non-core businesses and thus making diversion of funds and use of Public Deposits and loans for personal benefits put DSK Group in a position of bankruptcy.

As per report D S Kulkarni developer’s sale started declining in 2010. Even then they started diverting funds in multiple businesses like Toyota Car Selling outlet Agency, luxury two-wheeler production with foreign collaboration, education sector by establishing International Animation College etc. The banking industry started lending him. Many times, they exceeded the norms and prudent financial appraisal criteria. Thus, the Banks, Non-Banking Finance Companies and Housing Finance Companies jointly provided more funds than those to be invested. The borrowings were more than the project cost. Plus utilizing the name and fame, illegal deposits were collected from the investors.

RBI Act bans the uncontrolled entities like individuals, proprietary concerns, partnership firms and Association of persons to collect Public Deposits. To get out of the clutches of SEBI, knowingly and under design, the Public Deposits were accepted below Rs. 100 Crores. So many firms were established by using the brand name DSK. The similar names were used like DSK and Associates, DSK and Asso., D S Kulkarni Construction Pvt. Ltd. As the RBI Act puts ban on advertising so advertising was made in the name of D S Kulkarni Developers Limited. The offices of all entities were situated in same building DSK House at Shivaji Nagar , all had same Phone and Fax numbers and all used same logo.

Chronology of early warning signals of DSK Group’s Fallout

· 2004-2005

Used TDS collected from payees instead of depositing in Govt account

2007-2008

Started using TDS collected, instead of depositing in Govt account

Since 2010 Onwards

No Project except Megh Malhar could be completed as scheduled & promised to Flat Holders.

2010-2011

Almost all TDS was retained instead of depositing with Govt.

2014 September

Contractors, Suppliers & Amount Payments started being paid indefinitely late.

2015 April

DSK, Vidyanagar, Phase II, Baner, was promised delivery, dates were extended to December 2015, then to March 2016, not honored.

2015 August

Bank of Maharashtra Loans were categorized as SMA-2

2015 23rd September

Company Secretary N V Gopal in diligence report to Syndicate Bank mentioned that company has diverted funds to its subsidiaries Rs. 97.71 Crores.

2015 November

DSK Sadaphuli, Talegaon's possession was promised, was not honored. As promised in December 2013, not honored.

2015 December

Employees’ Salaries could not be paid as scheduled/ was delayed.

2016 13th March

The Kalyan Janata Sahakari Bank Limited sanctioned Quasi-Equity Unsecured Loan Rs. 6 crores.

2016 10th June

Immediately on, as interest & instalment due was not paid, Bank filed Dispute application

2016 30th April

Punjab National Bank's Loan Rs. 4.62 Cr. became overdue/ unpaid.

2016 31st May

ICD Crown Securities Loan became overdue/ unpaid.

2016 31st May

Bank of Baroda Loan to H. D. Kulkarni became Overdue/unpaid.

2016 25th July

ICICI Bank granted Term Loan Rs. 75 Crores for DSK Nabhangan Phase VII of Township DSK Vishwa.

2016 31st July

Punjab National Bank, FDOD, Loan Rs. 4.62 Crore turned NPA on 31st July 2016.

2016 31st August

Bank of Baroda. Loan to H. D. Kulkarni, Rs. 4.40 Crores turned NPA on 31st August 2016.

2016 30th September

ICICI Bank Term Loan 75 Crore was classified as NPA on 30th September, 2016

2016 October

All Projects' Development Work was completely Stopped for want of funds

2016 October

Employee’s Salary payment was delayed by 2 months.

2016 6th \ October

ICICI Bank Term Loan 75 Crore was recalled

2016 11th November

The Syndicate Bank MID corporate Branch Navi Peth Pune Sent letter, "Only second floor slab is completed as against G+ 8 Floors and there is no progress since last visit 23.05.2016."

2016 15th November

ICD Crown Securities, DSK Milkotronics Private Limited. Loan Rs. 2 Crores turned NPA on 15th November 2016.

2016 November

Project DSK Sadaphuli's Flat Holders were promised Possession, could not be completed till this date.

· Related Stories

DSK Scam

Subscribe for Free

To receive free emails or free RSS feeds, please, subscribe to Vijay Kumbhar's Exclusive News & Analysis

RTI KATTA

RTI KATTA is a platform to empower oneself through discussions amongst each other to solve their problems by using Right to Information act, Every Sunday Zoom Meeting at 10.30 AM

Vijay Kumbhar

RTI Resource Person, RTI Columnist

Phone – 9923299199

Website – http://vijaykumbhar.com

http://surajya.org/

Email – kvijay14@gmail.com

Facebook - https://www.facebook.com/kvijay14

Twitter - https://twitter.com/Vijaykumbhar62

YouTube - https://www.youtube.com/c/vijaykumbhar

Tuesday, July 7, 2020

Special MPID court rejects bail applications of 3 accused in DSK financial scam

The special MPID court on Tuesday rejected the bail application of 3 accused in DSK financial scam, However, the court allowed bail to D.S.Kulkarni’s brother Makarand Kulkarni. It has been more than 2 years since the real estate developer DS Kulkarni has been in jail along with his wife, son, sister-in-law. Son-in-law, daughter-in-law and others in connection with the Rs. 2,043 crore fraud case filed by the Economic Offences Wing. The special court rejected bail application of Dhananjay Pachpor ( Chief Operating Officer) Anuradha Purandare ( Sister-in-law ) and Kedar Vanjape ( son-in-law). Special Public Prosecutor Pravin Chavan strongly opposed bail applications.

Dhananjay Pachpor who was working with D.S. Kulkarni Developers Ltd. (DSKDL) on various Posts had applied for bail. While rejecting his bail application Special court observed that though, no proceeding is filed by Directorate of Enforcement (ED) against any of the accused till todate it cannot be said that, E.D. has exonerated the present applicant. Even on the basis of the statement of witness Chaitrali, at this stage, it cannot be concluded that there is no evidence against the present applicant. This cannot be considered a change in circumstances. During the investigation by Pune police, the applicant prima facie appears to have been involved in the deal of land at Fursungi. Apart from this, the statement of investors demonstrates that it was the applicant who induced them for investing in the various projects of the DSK group

While rejecting D.S.Kulkarni’s Sister-in-law Anuradha Purandares’ s bail Court Observed that, it is an economic offence having huge magnitude. Thousand of investors have deposited the amount in the DSK group of companies, in which the applicant was working in a high position. Though some accused in this case namely Mr. Ghatpande and Mr Nevaskar are already released on bail. However, the case of the applicant cannot be compared with them as role assigned to the accused released on bail is a different one and the case of the present applicant is more serious than the case of accused who released on bail.

Kedar Vanjape another accused in DSK Scam has also filed temporary bail as per the directions of the High Power Committee. Rejecting his bail application Court observed that, the alleged offence is an economic offence. In view of guidelines issued by Hon'ble High Power Committee, the serious economic offences and offences punishable under the MPID Act are not covered by the said guidelines.

Considering that the investigation related to Makarand Kulkarni D.s.Kulkarni’s Brother is completed and considering the role assigned to him in the commission of the offence and his age, keeping him behind the bars for a further period will not add anything more to the prosecution court allowed bail to him.

Makarand Kulkarni contended that his bank account was operated by Anuradha Purandhare or Hemanti Kulkarni as authorized signatories. He was unaware of the transactions happening in his bank account as they were operated by coaccused Anuradha Purandhare and Hemanti Kulkarni as a power of attorney. Makarand Kulkarni further contended that he signed few cheques only at the instance of main accused and he had blind faith on his brother.

Subscribe for Free

To receive free emails or free RSS feeds, please, subscribe to Vijay Kumbhar's Exclusive News & Analysis

RTI KATTA

RTI KATTA is a platform to empower oneself through discussions amongst each other to solve their problems by using Right to Information act, Every Sunday at Chittaranjan Watika, Model Colony,Shivaji nagar, Pune, between 9.30 to 10.30 A.M.

Vijay Kumbhar

RTI Resource Person, RTI Columnist

Phone – 9923299199

Website – http://vijaykumbhar.com _

Blogs - https://vijaykumbhar-marathi.blogspot.com/

https://vijaykumbhar-hindi.blogspot.com/

https://vijaykumbhar.blogspot.com/

http://surajya.org/

Email – admin@vijaykumbhar.com

kvijay14@gmail.com

Facebook -https://www.facebook.com/kvijay14

Twitter - https://twitter.com/Vijaykumbhar62

YouTube - https://www.youtube.com/vijaykumbhar

Saturday, April 28, 2018

DSK Scam: No relief for accused, special court rejects bail allows invocation of section 409, NCLAT refrains from alienating or transferring any rights

On Friday ( 27th March) special court rejected Deepak and Hemanti Kulkarni’s bail application and application challenging invocation of section 409 of Indian penal code ( IPC ) in this case.

Earlier ( on 20th March) National Company Law Appellate Tribunal ( NCLAT) stayed its own order and refrained DSKDL and its Directors and officers from alienating or transferring any rights.

Initially, Deepak and Hemanti Kulkarni of D.S.Kulkarni developer’s ltd (DSKDL) successfully managed to avoid their arrest in by deceiving various agencies in a multi-crore investment scam. However now, it has become very difficult for them to convince or fool any agency.

While rejecting bail applications of accused, Justice Utpat observed that, if the applicants ( Deepak and Hemanti) could not raise any amount when they were not under any restraint, it is very difficult to ascertain, how they would raise the funds for returning the amounts of depositors. Even the applicants have not put forth any viable proposal before this court to ascertain their intention of returning the amounts of depositors.

Justice Utpat Further observed that the facts on record further prima facie show that during the period granted by the Hon'ble Supreme Court and Hon'ble High Court, the accused could not furnish the amount of Rs.50 crores as directed by the Hon'ble High Court. Not only that, the evidence on record prima facie shows that the accused put forth sham proposals showing that they were depositing the amount of Rs.50 crores as directed by the Hon'ble High Court.

image Courtsey Financial Express

Deepak and Hemant's advocate Shivade also claimed bail on health ground to Deepak Kulkarni.

However justice Utpat observed that, there is no any recent medical report filed on record which shows that the physical condition of Deepak Kulkarni is not well. On the contrary, when hearing of bail application was going on, the presence of accused was secured on video conferencing and he was raising some problems before the court in very nice manner.

At his juncture, PP Pravin Chavan claimed that the doctor who gave a report of a clot in Deepak Kulkarni's brain was arrested for anti-superstition activities in Deenanath Mangeshkar hospital. FIR against him has been filed under section 3 of The Maharashtra Prevention and Eradication of Human Sacrifice and other Inhuman, Evil and Aghori Practices and Black Magic Act, 2013.

Earlier defending accused Deepak and Hemanti advocate Shrikant shivade claimed that since the applicants are in jail, they cannot raise money for returning the amounts of depositors.

He further showed the inability of the applicants to raise the funds as all the properties of the applicants have been attached by the Investigating agencies as well as the accounts have been seized.

Shivade also submitted that the applicants should be granted bail for six months, so as to generate funds to return the amount of depositors and in case, they fail to do the same, the situation should be reviewed after six months.

Confronting Shivade’s argument Special Prosecutor Shri Pravin Chavan put following Points

1. There is siphoning of huge amounts by DSKDL Company and its subsidiaries. For that purpose, he relied on the statement of one employee of DSKDL (name not disclosed on the oral request of PP ) and submitted as to how the applicants and their relatives started different companies i.e.DSK and Company, DSK Associates, DSK & Sons, DSK & Associates, DSK Brothers, D.S.Kulkarni and Brothers, DSK Constructions, DSK Enterprises, D.S.Kulkarni & Associates and D.S.Kulkarni & Sons and accepted various amounts from public, loan amount from banks and siphoned off the said amount.

2. Some of the firms established by the applicants and their relatives were not even registered and no permission was sought from SEBI for collecting money from the public. In spite of that, Shri Chavan submitted that the accused have collected huge funds.

3. The applicants have obtained Rs.1374 crores by way of loan from various banks, Rs.1153 crores by way of deposits from various persons, Rs.470 crores from flat holders, Rs.110 crores by way of debentures and Rs.123 crores by way of Totoya Finance. He further submitted that there was a large conspiracy between applicants and their relatives and they have siphoned off the said amount and the said aspect is under Investigation

4. The applicants do not have any property in their names to be sold and therefore, their release for the said purpose is out of the question. He further submitted that even if all the flats in the housing schemes launched by the applicants/accused are sold, it cannot generate the necessary funds to repay the amount of depositors as it requires a huge amount to complete the construction work.

5. Applicants are in arrears of Rs.61 crores towards Sales Tax payment and are also in arrears of some amounts towards Income Tax and they have to pay salaries of their servants.

6. After the rejection of anticipatory bail of the applicants by this court, the applicants had moved the Hon'ble High Court and Hon'ble Supreme Court for anticipatory bail and the Hon'ble Bombay High Court had granted sufficient time to the accused to collect money. However, during that time, the accused have not collected any amount. There is no possibility that the accused would generate the funds if released on bail.

7. If the applicants are released on bail, they may tamper with the evidence or they may abscond. He further submitted that the investigation of such a serious crime is at a very sensitive stage and as such.

Upholding Chavan’s point Justice Utpat rejected Deepak and Hemant's bail application

Rejecting application challenging invocation of section 409 of Indian penal code ( IPC ) in this case. Justice Utpat upheld argument PP Pravin Chavan that Directors of DSKDL company i.e. Deepak and Hemanti by accepting the amount in the fixed deposits from the public at large, have become the agents of those persons and therefore, they fall within the purview of sec.409 of I.P.C.

Earlier on 20^th April National Company Law Appellate Tribunal ( NCLAT ) gave one more shock to Deepak Kulkarni and his family. NCLAT stayed its own order and refrained DSKDL and its Directors and officers from alienating or transferring any rights.

On 13^th March National Company Law Tribunal ( NCLT) had directed DSK Kulkarni Developers Ltd (DSKDL), Deepak Sakharam Kulkarni (DS Kulkarni), his family members as well key managerial persons and directors in the DSK Group to disclose their all assets, including bank accounts owned by them in India and anywhere in the world.

The Tribunal had also directed stock exchanges to restrain trading in DSKDL while asking depositories to freeze securities owned by the Kulkarni family and key managerial persons and other directors of the company.

The Tribunal had barred them from mortgaging or creating a charge on any immovable and movable properties owned by them anywhere. Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs (MCA) had filed the petition.

However, NCLAT had ex-parte stayed abovementioned order on the application of Shirish kulkarni.

Serious fraud investigation Organisation ( SFIO) has appealed against said order and NCLAT then stayed its own order and refrained DSKDL and its Directors and officers from alienating or transferring any rights.

Wednesday, January 24, 2018

DSK Scam: D S Kulkarni continues to fool everybody with blatant lies .. .

With his dirty tricks, exaggerated facts and blatant lies DSK and his wife always fooled FD holders, flat buyers and investors.

They never put plain facts before anybody.

Not even before the courts!

Image courtsey Mumbai Live

Everybody was surprised when hearing on D S kulkarni and his wife’s anticipatory bail application (ABA) was adjourned and interim protection was extended for three days on 22nd January 2017.

At every hearing of DSK’s bail application in HC there was always some surprising element.

22nd January’s hearing was also not an exception to that!

This time Bombay High Court (HC) granted another three day DSK to escape arrest after they told that about Rs 51 crore is scheduled to come from abroad.

They also claimed that money has been deposited on 17th January in bank in Singapore and it requires 72 hours to credit it in their accounts.

To prove their claim they also submitted two documents in HC.

Sources confirmed that one document was showing successful transaction of 40 lac US dollars was made on 17th January through Telegraphic transfer from a bank in Singapore.

Another document was showing two successful transactions of 40 lac US dollars each made on 20th January.

Surprisingly the company Prabhune International Pte Ltd ( PIPL)that is said to be sending money to DSK digital technologies pvt ltd is facing closure in Singapore.

PIPL is registered with Singapore's Accounting and Corporate Regulatory Authority (ACRA). It was set up on 28 February 2013 as local company .

However, according to a First Gazette Notification issued on 8 January 2018 by ACRA, the company is scheduled to be struck off from the Registrar of Companies.

You can that gazette notification here

Striking off is one of the ways of closing down a local company in Singapore.

There are certain conditions to strike of companies in Singapore.

The company must have stopped business activities or not have commenced activities from the date of incorporation.

Company should not have current or contingent assets or liabilities

Finalised accounts drawn up till the date of cessation must be attached to an application to the ACRA to strike the company’s name from the Register of Companies.

If PIPL is closing down its business, then how can it send 80 lac dollars (51 Crore rupees) to DSK in India?

And how much money is PIPL to DSK Digital 80 lac dollars or 1.20 crore dollars?

Because both documents show three transactions of 40 lac each ?

Any sources confirm that none of the money was received by bank in India till 23rd January .

And if at all PIPL is sending money why didn’t DSK inform it to court on hearing that was on 18th January? When first transaction was shown on 17th .

Answer is simple when it was agreed that extension given by apex court will end on 22nd January . There was no point in wasting another option left.

So DSK kept that option open for next hearing and used it on 22nd january.

DSK’s surpises do not end here.

Earlier.

DSK and his wife’s ABA were rejected by Pune special MPID court on 9th November 2017.

Then they filed ABA in Bombay High Court (HC).

At first hearing on 17th November in HC they were given interim protection from arrest because Investigating Officer had not reached in time and Public Prosecutor had requested for time to take instructions and peruse the record.

Confident (?) of repaying investors’ money DSK addressed a press conference on 21st November and said that they will submit a detailed report of repayment in the court on 23rd November .

Many people always term DSK’s lies as his confidence.

Then on 23rd November hearing was adjourned at the request of learned Senior Counsel for DSK and he was asked to furnish a plan or scheme to repay FD holders money.

On 30 November DSK submitted a list of six properties for sale to the IO and brought the same to the notice of the court.

However these properties are mortgaged with banks and later on two of these properties were seized and auction procedure was initiated by banks.

Then HC asked DSK to file an affidavit by 4th December with an undertaking to deposit 25% ( Around 50 Crore) of the depositors' dues with the court's registry in two weeks.

HC also warned DSK failure of compliance will automatically lead to the vacation of the interim protection granted to them and he will have to surrender immediately in front of the investigating officer.

Accordingly on 4th December DSK filed an affidavit in HC and committed to deposited 50 crore rupees within two weeks.

And hearing was postponed till 19th December.

However DSK didn’t deposit 50 crore rupees in court nor did he surrender.

On 19th December due to paucity of time the matter was adjourned but HC clarified that the Economic Offences Wing (EOW) is free to initiate action against DSK and his wife.

Due to Christmas vacation matter in HC was postponed till 18th January 2018

Meanwhile DSK remained untreatable and filed special leave petition in Supreme Court.

On 22nd December Supreme Court (SC) extended time given to DSK to deposit 50 crores by 4 weeks.

However Supreme Court had also made it clear that no further extension will be granted.

However there was some surprising confusion on counting four weeks from Supreme Court order on extension.

According to cause list of HC dated 18th time is extended as per Supreme Court's order dated 22.12.2017 was up to 19.1.2018.

However in HC order on 18th January says that ‘On 22.12.2017, the Hon'ble Apex Court had extended the time for depositing the amount by four weeks. That would be till 22.1.2018.”

HC also mentioned in its order on 18th January that “This Court had extended the interim relief. However, it was made clear that if the applicants fail to deposit the said amount within the stipulated period, the interim relief granted vide order dated 10.11.2017 would automatically stand vacated. Since it was a self-speaking order, the interim relief was deemed to be vacated in view of the fact that the amount of Rs.50 crores was not deposited within the stipulated time.”

As it was holiday on 20th and 21st January 2018 matter was postponed to 22nd January.

Now everybody is waiting for 50 crore rupees that are supposed to be deposited in DSK’s account.

Now what will be the scenario on 25th January.

Chances of PIPL depositing money in DSK Digital’s account are remote.

However, Even if that money is deposited it will be under Enforcement Directorates and Income Tax departments’ scanner.

Income tax has already sent notices to all the government authorities for recovery of 20 crore rupees TDS that DSKDL has deducted and not deposited with it.

Hence it will not be easy for DSK to deposit 50 crores on 25th January.