{"id":"f-ebdaa7ae0c-40a60033-9a16-5ded-82e0-244acd9f507e","title":"Mumbai News: Special PMLA Court Rejects ARC Plea To Auction DS Kulkarni Properties, Cites Risk To Investors","description":"","timestamp":1766033340,"category":"national_v_two","headline":"Mumbai News: Special PMLA Court Rejects ARC Plea To Auction DS Kulkarni Properties, Cites Risk To Investors","modifiedHeadline":"Court Blocks Auction of DS Kulkarni Assets","subCategories":["scid_2c0dc4ac"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"65","fcSummary":"A Mumbai court rejected Encore's plea to auction DSK Developers' mortgaged properties, attached during a PMLA probe. The court cited potential \"irreparable loss\" to thousands of investors, as the loans to DSK Group were deemed illegal and violated RBI guidelines.","summary":"Mumbai: Investors face potential losses as PMLA court halts auction of DS Kulkarni properties, citing risks. ARC's plea rejected.","ctaUrl":"https://trends.glance.com/newz/India_News/IN/en/freepressjournal/f-ebdaa7ae0c-40a60033-9a16-5ded-82e0-244acd9f507e","sourceUrl":"https://www.freepressjournal.in/mumbai/mumbai-news-special-pmla-court-rejects-arc-plea-to-auction-ds-kulkarni-properties-cites-risk-to-investors/glance","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/QzZF__XMha20.webp","content":"

Mumbai, Dec 17: The special PMLA court has rejected a plea by Encore Asset Reconstruction Company seeking the release and auction of mortgaged properties of DS Kulkarni Developers that were attached by investigating

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agencies during the probe. While dismissing the plea, the court said such a move could cause irreparable loss to thousands of investors and depositors.

Encore’s Claim Over Assigned Credit Facilities\n

Encore claimed that it was assigned the credit facilities sanctioned and disbursed by Kalyan Janata Sahakari Bank Limited (KJSBL) to DS Kulkarni Developers. KJSBL had extended three facilities worth Rs 23 crore. In addition, the bank granted a term loan of Rs 6 crore to Hemanti Deepak Kulkarni and Rs 4 crore to Shirish Deepak Kulkarni.

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Argument On Prior Mortgage And Attachment

It was further contended that the properties mortgaged against the credit facilities were first attached under the MPID Act and later by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act.

It was argued that these properties could not have been attached in the first place, as they had been mortgaged to KJSBL prior in time, making the attachment illegal.

ED Opposes Plea, Cites Public Deposits Scam

The plea was opposed by the ED, arguing that the accused had dishonestly induced gullible public and collected funds under the guise of various deposit schemes. It alleged that crores of rupees were collected from the general public between 2006 and 2017.

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Court Flags Illegality Of Bank Loans

The court noted that, as per the forensic audit report, the loans granted by KJSBL to the DSK Group were ab initio illegal, void and sanctioned in violation of RBI guidelines.

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Court Rules Against Auction At This Stage

The court, while rejecting the plea, said, “At this premature stage, it would not be just and proper to vacate the attachment and to permit the applicant to proceed with the auction sale of the mortgaged property.”

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Mumbai News: Special PMLA Court Rejects ARC Plea To Auction DS Kulkarni Properties, Cites Risk To Investors

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