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.
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.
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