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MPID court rejects the bail application of real estate developer DS Kulkarni

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The amount paid by way of interest was approximately Rs 251 crore, while the amount paid towards the principal was Rs 754 crore.

A special Maharashtra Protection of Interest of Depositors Act (MPID) court on Friday has rejected the bail applications of real estate developer DS Kulkarni alias DSK and his wife Hemanti in connection with the alleged Rs 2,091.11 crore economic offence case.

Earlier the sessions court had rejected their bail applications. This is first time after the Economic Offences Wing (EOW) filed chargesheet in the multicore fraud case, Kulkarni and his wife had moved applications seeking bail. Special Judge JN Raje (MPID) rejected the bail applications.

Advocate Chinmay Inamdar represented the DSK couple and argued on various grounds. Advocate Inamdar submitted that during the period of alleged offence from 2006 to November 2017, the total amount of deposit accepted was approximately Rs 1,297 crore. 

The amount paid by way of interest was approximately Rs 251 crore, while the amount paid towards the principal was Rs 754 crore. Thus, the total amount paid against the deposit accepted during this period was Rs 1,005 crore. This fact clearly rules out the alleged fraudulent intention, argued the advocate. On the contrary, it proves the bona fide intention of the accused, he said. 

The interest offered on the deposit was in consonance with the trend of revenues in corporate sector and the accused never promised fancy or fraudulent rates of interest, he further said. The defence lawyer further submitted that DSK has been in the business of real estate since 1980, and till 2016, i.e. for 36 years, there was no default in repayment. The land transactions at Phursungi were carried out between 2005 and 2008. During the time, all the depositors were paid their amount and there were no dues, as such the land transaction has no nexus with the provisions of MPID, he asserted.

Advocate Inamdar added that more than 400 cases have been filed by the depositors in various courts under section 138 of the Negotiable Instruments Act and the accused is also required to defend those cases. Unless the accused is granted bail, it is difficult for him to find financial investors for lands and projects and negotiate re-structuring of financial business, he emphasised.

DSK and other accused were booked for cheating, forgery and relevant provisions of the MPID Act in 2017. The couple and other accused are in jail since March last year. The alleged fraud refers to siphoning off funds raised via depositors, secured and unsecured loans, non-convertible debentures and money collected from homebuyers in various stalled projects of the DSK group.

Source: Press Release

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