DSK Group raised over Rs 700 cr from banks

DSK Group raised over Rs 700 cr from banks

The Pune-headquartered DSK Group, that is embroiled in a Rs 2,043.18 crore scam, had secured loans over Rs 700 crore from banks.

From the Bank of Maharashtra (BoM), the company had secured around Rs 100 crore.

The exposure includes deposit and loan fraud of Rs 1,083.7 crore, banking and non-banking financial institutions (Rs 711.36 crore), debentures (Rs 111.35 crore) and Phursungi land fraud (Rs 136.77 crore).

The DS Kulkarni Developers Limited (DSKDL), founded by D S Kulkarni, popularly known as DSK, has been in trouble for the last two years.

The DSK Group had a rag to riches story and its doors would always be open to depositors. The group's FDs have been quite popular and it gave 10% to 12% interest, much higher than the banks.

The problem began in 2016 when interest cheques of the DSK group companies began to bounce. The group has over 30,000 depositors. Also, in 2016-17, more than 250 employees had to quit their jobs. From mid-2016, people had started queuing outside the Pune office for their hard earned money.

RTI activist Vijay Kumbhar unearthed the scam by filing RTI applications and blogging about it. Subsequently, depositors filed cases with the Economic Offences Wing (EOW) of the Pune Police.

The EoW had booked the Kulkarnis, DSK and his wife Hemanti, under various sections of the Maharashtra Protection of Interest of Depositors (MPID) Act, along with IPC Sections 420 (cheating and dishonestly inducing delivery of property), 406 (criminal breach of trust) and 34 (common intention).

So far, 12 arrests have been made in the case, including relatives and employees of DSK, and BoM officials.