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Thursday, November 16, 2017

DSK is proud of his Sins but investors are in hell

DSK is proud of his Sins but investors are in hell .

Yes , that’s true !

DSK’s downfall began when they started diverting investor’s funds from their original business of real estate to other business. That was their first sin.

Then they started envying their original business of real estate and diversified (?) to other businesses.

However all of these businesses were milked by DSKDL only.

One of the DSK group companies’ is Talisman Hospitality services pvt. Ltd ( THSPL)

THSPL runs a restaurant cum night club called ‘Sin Envy Pride’ .It opens late in the evening.

Programs like Misbehave Wednesday, Thrifty Thursday, sinful Saturday, sinset Sunday are organised here. Many times free liquor is offered to Ladies.

This restaurant entity is very small compared to other DSK businesses. However Reason behind writing this in detail is, like other business funds from DSKDL funds were also diverted to this restaurant.

DSKDL has signed an agreement with this restaurant for availing restaurant/ hotel/ hospitality/ conference room services at the normal terms as offered to the independent customers up to an aggregate amount not exceeding 25 lac rupees.

What would have the ordered from this restaurant which opens at 8 P.M

Though 25 lac rupees is very small amount but this is how DSKDL’s crores of were diverted to DSK Family’s private limited companies and partnership firms.

Here are some more examples of money siphoning

DSK Motors Pvt. Ltd –

1. For Purchasing cars at prices at prevailing market rates at the value not exceeding `1 cr.

2. For Availing spares and servicing facility for all the motor vehicles of Toyota make at the card rates offered by DSK Toyota at the value not exceeding 50 lacs.

D. S. Kulkarni & Company –

1. For Sale of flats on c o m m i s s i o n calculated at the rate of 3% of the total costing of the project, total commission not exceeding 46,29,240/ (DSK Sadaphuli )

2. For Sale of flats on c o m m i s s i o n calculated at the rate of 3% of the total costing of the project, total commission not exceeding `1,68,63,860/- (DSK Chaitraban)

D. S. Kulkarni & Associates

1. For Sale of flats on c o m m i s s i o n calculated at the rate of 3% of the total costing of the project,total commission not exceeding 1,68,90,380/- (DSK Pushpaban)

DSK Global Education and Research Ltd.

1. For Sale of flats on c o m m i s s i o n calculated at the rate of 3% of the total costing of the project,total commission not exceeding ` 1,74,86,670/- (DSK Anandghan)

DSK Global Education and Research Ltd

1. For Availing cafeteria facility for an amount of ` 100/- per day, per head at the normal terms offered by the said DSK Global and on an arm’s length basis at prevailing market prices, for an aggregate amount not exceeding ` 40,00,000/- ( DSK Dream City)

DSK Worldman Projects –

1. 1. for Sale of flats on commission calculated at the rate of 3% of the total costing of the project, total commission not exceeding 47,83,485/-

You will find entire list of money siphoning in the year of 2015 -2016 here

Interestingly company having in business of real estate does its own office . It has taken premises for offices on rent from D S Kulkarni & Associates, D S Kulkarni & Company and Hemanti Kulkarni etc.

And off course heavy rent is being paid as rental amount to these entities

Since DSk scam has been exposed there is flood of rumors and misleading statements on social media.

Now the scam has taken interesting but dangerous turn. There are hardly any chances that investors wiil get all their money back.

However DSK well-wishers and supporters are turning blind eye on naked facts.

It has been now crystal clear that DSK’s liabilities are far more than his assets .

DSK’s liabilities are around 6,000 Crore rupees ( six thousand crores) while his assets are not more than 1,000 Crore ( One thousand crore Rupees)

Secured charges of all the banks on DSK and their Private limited Companies are around 2992.84 Crore ( Two Thousand nine hundred and ninety two crores rupees) .

This is not exaggerated figure this information is available on website ministry of corporate affairs .

Apart from that DSKs partnership firms must be having loans and liabilities, but that info is not available.

DSK’s partnership firms include DSK & Co, Amit & Company, Gharkul, Rasa Group, D.S. Kulkarni & Brothers, D.S. Kulkarni and Sons, DSK & Sons, D.S. Kulkarni & Company, D.S. Kulkarni & Associates, DSK & Associates, DSK Sales & Services

Besides that fixed deposits from public estimated at around Rs1,000 crore, unsecured loans of Rs1,100 crore, non-convertible debentures (NCDs) of Rs140 crore, statutory liabilities of Rs100 crore, money received from customers Rs815 crore.

This total goes to more than 6,000 crores ( six thousand crore rupees)

DSK’s assets are not more than 1000 Crore rupees.

However for sake of argument if we agree with DSK supports that his assets are worth 1800 crore rupees even than that is not sufficient to clear bank loans .

Then Forget about returning investors money.

Instead of facing truth they are busy in spreading rumors and misleading other investors.

On last hearing on D S Kulkarni’s anticipatory bail in high court APP has categorically submitted that the Investigating Officer has just now arrived in the Court and he has to take instructions and peruse the record. And at his request case was adjourned till 17 November .

Till then interim relief was granted to DSK and condition was imposed on him that he shall not tamper with the evidence and/or pressurize or threaten the prosecution witnesses.

However immediately after hearing news appeared on social media as if court itself asked DSK to come with concrete proposal.

What could be the reason behind spreading such news ?

One thing is clear for DSK legal option of getting rid of this situation have become narrower , hence he is finding emotional option.

Immediately after HC hearing DSK supporters became active they started signature campaign to support him. Started calling people to convince them.

Even DSK also became active on social media appealing investors.

However these things are not going to work for DSK.

Whether he gets or not anticipatory or regular bail is not going to affect case, it will continue.

Another funny thing is , the DSKDL’s board meeting scheduled on 14^th November for the quarter ended 30 September 2017 and Annual General Meeting for FY2016-17was postponed indefinitely .

The reason given for postponement was interesting , It said ““A complaint has been lodged by the deposit holder with the EOW of Maharashtra Police in connection with non-refund of deposit by two promoter group entities. The promoter group entities are not this listed company. In the process of investigation, the EOW has taken into custody, the accounting, secretarial and other records, both physical as well as electronically maintained, of the group entities including this company. The appeal for release of records by EOW is been made and is in process of preparation.

FIR was filed against DSK on 28^th October .

The police searched DSKDL properties on 2^nd November.

Even then in pune special court submitted proposal to return invertors money in High Court also he is ready to submit proposal.

On both these occasions DSK didn’t find any difficulty in submitting proposal despite record seizures.

But for Board and AGM meeting he finds difficulty.

Reason is obvious!

If they conduct AGM then audit report will have to be submitted and if last years audit report is out Pandora’s box will open, because auditors have already clarified that they were not satisfied with the accounts submitted by DSKDL and also put question mark on companies’ ability to continue business.

Now its up to DSK's investors to open eyes ot to keep faith on rumors.

Already more than 3000 complaints ave been filed against DSKs in all over Maharashtra.

Government of Maharashtra has also decided to appoint a single monitoring agency to look in into progress of the probe and to rope in multiple agencies like RBI , SEBI , RoC.

One thing is for sure as money involved in DSK scam is huge !

However that money has not been vanished in air.

It must be somewhere

And only way to find out that money is Maharashtra Protection Of Interest Of Depositors Act (mpid) Act !

Wednesday, August 9, 2017

DSKDL public Limited Company or Criminal Enterprise?

Do you remember a song ‘Aisa Koi Saga Nahi, Jisko Thaga Nahi’ from hindi movie ‘Bunty Aur Babli’ starred by Amitabh, Abhishek bacchan and Rani Mukharjee ?

Adopting the names of 'Bunty' and 'Babli', , Abhishek and Rani successfully pull off con after con, looting people dressed as local guides, religious priests, health inspectors, business partners, etc.

The reason behind remembering Bunty and Babli was, after my last post lot of people called, some emailed and some met personally and shared their experiences with me about D.S Kulkarni ( DSK) and his so called empire.

DSK officially formed D.S.Kulkarni developers limited ( DSKDL) in 1991. However what was not there in DSKDL?

There were forged signatures, murky deals, shell firms, money siphoning, duel identities, conspiracy and everything that needed to con investors, banks and government authorities.

Only the thing that was not there was professional attitude!

Then how did DSKDL survived so many years?

The Reason is simple.

DSK is best actor, has fantastic oratory skills and ability to manage everybody with power of money.

On this capital he built good image in the society.

The relatives and staff who realised consequences of association with DSKDL left it immediately. Others either became party to his actions or remained mute spectators

DSKDL’s activities may be divided in two parts pre and post 2006 ie. Pre public issue

Pre public issue and after becoming public limited company they formed lot of private limited companies and partnership firms.

Money Siphoning

These companies were mostly dominated by Hemanti Nilakanth Phadke ( HNP) and her two sisters, Anuradha Purandare and Vaijayanti Mudgal .

They managed to siphon of DSKDL’s crores of rupees to these firms successfully.

In may last post we saw how they DSKDL paid crores of rupees to D.S.K and company for mere consent for land deals.

Another way of direct money siphoning was, they use to purchase land in the name of DSK’s relatives and later on DSKDL would purchase it from him/her.

And then they use to withdraw amount paid to that relative by DSKDL

However that didn’t come to light because DSK successfully managed to reshuffle the funds and due to DSK’s image funds were literally pouring in DSKDL.

Shell Companies

Then they started taking Fixed Deposits (FD) for the companies that were not allowed to take FDs by Reserve Bank Of India (RBI) .

These companies were DSK and Sons, D.S.kulkarni and brothers, D.S.Kulkarni and associates , DSK Enterprises, DSK & Asso, DSK constructions, etc.

Investors and FD holders were not even aware that they were investing in the companies who have no business in reality and exist only on paper. These all were partnership firms.

The success in money siphoning business led them to go for public Issue.

Misleading Information + Dual Identities

Hemanti Nilkanth Phadke changed her name to Hemanti Deepak Kulkarni in 1989

The information provided in offer brochure of public issue itself raises doubts about very intentions of the promoters.

Along with DSK his then wife Jyoti Kulkarni and Hemanti Phadke were promoters of public issue.

However they didnt mention that HNP and Hemanti Deepak Kulkarni were the same person.

And in same document in financial information of the group companies, HDK’s name appears as a partner in partnership firms Amit & company and Gharkul .HNP’s name appears in many other companies.

What was the intention behind showing same persons different identities in offer document?

HNP was an employee in DSk’s firm. She changed her name from Hemanti Nilkanth Phadke (HNP) to Hemanti Deepak Kulkarni (HDK) in 1989. DSKDL was incorporated in 1991.

However she kept her both the identities alive in transactions of DSKDL .She was holding shares in both the names. The reason behind that only her or DSK can tell.

Forged Signatures

In 2001 Hemanti Phadke and Sanjay Deshpande signed on this share

In DSKDL forging signatures was not a serious affair.

The share certificate issued in 2001 is signe by Sanjay Deshpande ( DSK’s son in law) as authorized signatory.

when the same share certificate was reissued for some reason, once again Sanjay Deshpande’s signature appears there.

However Sanjay Deshpande had left DSKDL in 2004.

Then who forged his signatures?

Nobody other than autorised signatories of DSKDL could forge Sanjay Deshpande”s signatures because they were the only other signatories on the share certificate and they were aware that Deshpande was not in the company during that period.

In my earlier post on DSKDL Sanjay Deshpande has commented that “Vijay Da, I read ur blog link, left DSK in 2004 & sure hasn’t signed anything after 2006!”

On same share certificate in 2001 HDK alias HNP has singed as Hemanti Phadke while in 2012 she has signed as Hemanti Kulkarni.

She was a minority share holder as Hemanti Phadke and Hemanti kulkarni as authorised signatory of DSKDL at the same time.

In 2012 hemanti signed as kulkarni and sanjay deshpande signe is ther when he had left DSKDL in 2004

Conflict of Interest

DSK has formed dozens of personal companies as other than DSKDL just for the purpose of taking Fixed Deposits!

These companies don't have any business activity going on other than raising FDs!

All these companies are in the same competing business and all the transactions are done by the same woman (HNP/HDK) in all these companies.

Basically she controls all the finances of all these companies.

Manipulation of Funds

In a video and interview to ABP mazha DSK claims that unlike other builders he prefers to take FD holders as partners instead of using other means of finances.

But looking at the company's finances and after communicating with financial institutions and customers, it appears that more than 1000 crores of rupees were disbursed to DSK through these Chanel for project construction activities.

However not even 10 % of the disbursed amount was used for actual construction purpose because his entire project work is stalled for many months.

If that money was not used for construction then it was certainly not used for repayment of FD holders because they are still fighting for their even thousand rupees every day.

And crores of rupees of payment of contractors and suppliers is still due with the company! Then the question remains is where did that money go?

Even the customers are complaining that more than 80% of their housing loan amount is disbursed without their consent but there is no work going on at the sites and not even 10% work is done at sites and the possession of their apartments are delayed by years!

Flat buyers will have to keep a close watch on the committed dates of possession of the RERA registered projects of DSK!

Conspiracy

More important question is when there was not even 10% work in progress on ground then how come financial institutes disbursed 80 % of the loan amount to DSKDL?

That indicates that these financial companies were also had hand in glove with DSKDL.

It's a big surprise that how they were able to service the interest of the investors earlier because there is no source of income to these companies other than Fixed Deposits!

There is no permission from RBI or SEBI to raise Fixed Deposits and the investors are not even made aware of it!

The FD holders of his public limited company have little bit guarantee to get some of the invested money back but what about the personal companies where there no security to the investors of getting back even a single rupee or their invested amount.

Murky Deals

Here is another manipulation by DSKDL family with a big Loss to the Shareholders and Public Authorities!

There was a company known as Oyster Promoters & Developers Pvt Ltd, owned by HNP and Ashwani D. Kulkarni .

Oyster Company was created by Kulkarni Family to take advantage of DSKDL at a loss for shareholders.

This company owned some defence and forest reservation land and was a loss making company.

Yet DSK went ahead and merged this loss making Oyster whose land was worth not more than some lac rupees was merged to DSKDL by issuing 38 lac shares of DSKDL worth more than 40 crores at that time.

Interestingly as per 2006 offer document HNP has 98 % in Oyster Company and Ashwini Kulkarni and Talekar have 1 % each.

However when Oyster merged with the DSKDL 15.2 Lac shares worth more than 20 crores were transferred to HNK and her son Shirish Kulkarni.

One can observe the manipulated Shareholding Pattern of 38 lac shares and how those landed in the hands of DSKDL Family Members.

HDK who was a minor shareholder earlier in DSKDL grown richer by 15.2 lac shares from Oyster merger and also another 8,18,307 shares she claims to have received as a gift from unnamed entity as shown on NCD prospectus 2014 .

Dubious Share Transfers

Another surprising & questionable shareholding of approximately 15 lac DSKDL shares is by Shirish Deepak Kulkarni.

Question is when HNP was partner in Oyster what shares were transferred to HDK and when Shirish was not remotely concerned with oyster then why 15.2 lac shares were transferred to him.?

Loss To Company, profit to Family

There is an institute known as DSK Global, Pune, earlier owned by Family members of DSKDL.

When the institute started showing losses, DSKDL made it a subsidiary of DSKDL thus passing the family loss to shareholders.

And now DSKDL has given bank guaranty of 100 crores for loan obtained by DSK Global.

The DSKDL annual report of 2016 itself they admit that they have sold off almost all their land bank at Dhayari, Kirkatwadi and Balewadi and today other than Fursungi, they don’t have any other land remaining but they are claiming to have huge land bank worth 10000 crores!

Another shocking thing is First they siphoned off 165 crores to D S kulkarni and company from fursungi land and now committing 300 crore rupees against 5,00,000 sq ft of DSKDL's own dream city project!

So whatever money DSKDL is supposed to earn has already been planned to divert to HDK and her Shirish through D.S. kulkarni and company.

Interestingly DSKDL has indemnified all these companies from any losses or damages putting all the liabilities on DSKDL

Employees crying foul

Since last few months DSKDL’s staffs is crying foul.

Few months’ back staff strength was close to 1500 now has been reduced to 40 only.

Since last many months they have not been paid any salaries to employees.

Not even d their TDS returns has not been cleared by DSKDL

Why DSK family is doing all this?

The reason and outcome of DSKDL family actionss reflect in share holding pattern of DSKDL.

HNP/HDK is now major shareholder after DSK and if we count Shirish Kulkarni’s shares then total is more than DSK’s shares.

Along with her sisters by siphoning off money from DSKDL , they have grown richer by crores of rupees.

And DSK himself wanted to be like Hiranandani.

In email to after my last post on DSKDL one ex. employee wrote to me ‘Twice I asked him (DSK) before joining that Why You want to hire me ? As per current records you have 95% Maharashtra’s whereas I am Sindhi. He proudly told me, I have noticed How Hiranandani, Rahejas progressing in Mumbai. Now I don’t want any "Marathi speaking person" I chose U out of 70 candidates who came to my office and sat/waited 4 hours for interview “

He was briefly in DSKDL for 4 months?.

Investors, Banks, Depositors, flat buyers, suppliers, employees everybody is crying for their money. Then Mr.DSK where did all that money go?.

Land cruiser, flat in trump tower business class air tickets for family and so on, the list is very big. DSK and his family member are enjoying lavish life style at the cost of these peoples’ money.

No Mr. DSK it is not your family matter. All that money you are enjoying belongs to public.

And you have to return it to them!

Thursday, November 16, 2017

DSK is proud of his Sins but investors are in hell

DSK is proud of his Sins but investors are in hell .

Yes , that’s true !

DSK’s downfall began when they started diverting investor’s funds from their original business of real estate to other business. That was their first sin.

Then they started envying their original business of real estate and diversified (?) to other businesses.

However all of these businesses were milked by DSKDL only.

One of the DSK group companies’ is Talisman Hospitality services pvt. Ltd ( THSPL)

THSPL runs a restaurant cum night club called ‘Sin Envy Pride’ .It opens late in the evening.

Programs like Misbehave Wednesday, Thrifty Thursday, sinful Saturday, sinset Sunday are organised here. Many times free liquor is offered to Ladies.

This restaurant entity is very small compared to other DSK businesses. However Reason behind writing this in detail is, like other business funds from DSKDL funds were also diverted to this restaurant.

DSKDL has signed an agreement with this restaurant for availing restaurant/ hotel/ hospitality/ conference room services at the normal terms as offered to the independent customers up to an aggregate amount not exceeding 25 lac rupees.

What would have the ordered from this restaurant which opens at 8 P.M

Though 25 lac rupees is very small amount but this is how DSKDL’s crores of were diverted to DSK Family’s private limited companies and partnership firms.

Here are some more examples of money siphoning

Related Stories

Wednesday, August 9, 2017

DSKDL public Limited Company or Criminal Enterprise?

Hemanti Nilkanth Phadke changed her name to Hemanti Deepak Kulkarni in 1989

Related Stories

Thursday, November 16, 2017

DSK is proud of his Sins but investors are in hell

DSK is proud of his Sins but investors are in hell .

Yes , that’s true !

DSK’s downfall began when they started diverting investor’s funds from their original business of real estate to other business. That was their first sin.

Then they started envying their original business of real estate and diversified (?) to other businesses.

However all of these businesses were milked by DSKDL only.

One of the DSK group companies’ is Talisman Hospitality services pvt. Ltd ( THSPL)

THSPL runs a restaurant cum night club called ‘Sin Envy Pride’ .It opens late in the evening. Programs like Misbehave Wednesday, Thrifty Thursday, sinful Saturday, sinset Sunday are organised here. Many times free liquor is offered to Ladies.

This restaurant entity is very small compared to other DSK businesses. However Reason behind writing this in detail is, like other business funds from DSKDL funds were also diverted to this restaurant.

DSKDL has signed an agreement with this restaurant for availing restaurant/ hotel/ hospitality/ conference room services at the normal terms as offered to the independent customers up to an aggregate amount not exceeding 25 lac rupees.

What would have the ordered from this restaurant which opens at 8 P.M

Though 25 lac rupees is very small amount but this is how DSKDL’s crores of were diverted to DSK Family’s private limited companies and partnership firms.

Here are some more examples of money siphoning

Related Stories

Wednesday, August 9, 2017

DSKDL public Limited Company or Criminal Enterprise?

Hemanti Nilkanth Phadke changed her name to Hemanti Deepak Kulkarni in 1989

Related Stories

THSPL runs a restaurant cum night club called ‘Sin Envy Pride’ .It opens late in the evening.

Programs like Misbehave Wednesday, Thrifty Thursday, sinful Saturday, sinset Sunday are organised here. Many times free liquor is offered to Ladies.