DSK group asked to deposit Rs 50 crore in HC to repay investors

Mumbai: The Bombay High Court on Thursday granted Pune-based real estate developer, DSK group, time till February 5 to deposit Rs 50 crore in the court to repay its investors, who have allegedly been duped of their money.

As a result, the earlier interim protection from arrest granted to the group's owner, Deepak Sakharam Kulkarni, and his wife Hemanti was also extended till the next hearing on February 5.

Justice Sadhana Jadhav also asked the group to submit by February 2, a list of its properties and assets that can be mortgaged to help repay its investors. She granted the developer time till February 5 to deposit Rs 50 crore with the court registrar, in compliance of the earlier HC orders.

The DSK group was supposed to have deposited the money last week, but the developer told the court today that while the money had been wired to one of its domestic account by the foreign bank, it needed at least three more days for clearance by the Reserve Bank of India.

"This court has no hesitation in putting you behind bars. However, the investors must be paid first. This is the court's main aim. That is why the court is granting you an additional time," Justice Jadhav said.

The developer, however, said the group had every intention to repay its investors and to comply with the court's orders.

Last year, following several complaints from investors, the Economic Offences Wing of the Pune Police conducted searches at DSK's offices and also wrote to banks to freeze the firm's accounts.

According to the complaint filed by one of the depositors, investors had put in several lakhs each in a deposit scheme of DSK developers.