Pune: A special court for Maharashtra Protection Of Interest Of Depositors (MPID) Act reserved its order for Wednesday on the anticipatory bail plea of prominent builder D S Kulkarni and wife Hemanti after the prosecution and defence lawyers completed their arguments on Tuesday.
The court extended till then the interim protection against any coercive action by the police granted to Kulkarni — also known as DSK — and his wife on November 4.
Additional public prosecutor Sunil Hande opposed the plea, arguing that the assets of eight DSK companies that accepted deposits were far less than the liabilities. He further added that the firms, some of which were not enrolled with the registrar of companies, were not in a position to repay the deposits.
Hande submitted that since the registration of the FIR on October 28, the number of complaints received by the police has gone up to 1,340 and involve deposits worth almost Rs 40 crore. He cited a chartered accountant's report highlighting poor financial condition of the firms and their inability to repay the deposits.
Defence lawyer Shrikant Shivade submitted that the case for fit for grant of a conditional pre-arrest bail in the interest of the depositors, as the DSK companies were making desperate effort to sell off properties and repay the deposits.
An arrest would hamper this process, he said, adding that the applicants were willing to give an undertaking that no property will be sold without the permission of the court and the money raised will be used for repayment of deposits.
Shivade argued that the police have invoked Section 409 of IPC in the case with a mala fide intent to deny pre-arrest bail, as the initially invoked offences were punishable up to seven years. He added that the section refers to criminal breach by a public servant, banker, merchant or an agent and the applicants did not fall in either of these categories.
The defence lawyer submitted that the police have wrongly valued the companies' properties based on the ready reckoner (RR) rates, whereas all these properties were in prime locations with high market values. Attachment of properties and their auction based on RR rates would only mean a longer wait for the depositors to get their money and would benefit a few land sharks who are after these properties, he argued.
The counsel furnished audited reports of DSK companies for the last three years and maintained that there was no evidence to suggest that money was siphoned off for other purpose.
The court extended till then the interim protection against any coercive action by the police granted to Kulkarni — also known as DSK — and his wife on November 4.
Additional public prosecutor Sunil Hande opposed the plea, arguing that the assets of eight DSK companies that accepted deposits were far less than the liabilities. He further added that the firms, some of which were not enrolled with the registrar of companies, were not in a position to repay the deposits.
Hande submitted that since the registration of the FIR on October 28, the number of complaints received by the police has gone up to 1,340 and involve deposits worth almost Rs 40 crore. He cited a chartered accountant's report highlighting poor financial condition of the firms and their inability to repay the deposits.
Defence lawyer Shrikant Shivade submitted that the case for fit for grant of a conditional pre-arrest bail in the interest of the depositors, as the DSK companies were making desperate effort to sell off properties and repay the deposits.
An arrest would hamper this process, he said, adding that the applicants were willing to give an undertaking that no property will be sold without the permission of the court and the money raised will be used for repayment of deposits.
Shivade argued that the police have invoked Section 409 of IPC in the case with a mala fide intent to deny pre-arrest bail, as the initially invoked offences were punishable up to seven years. He added that the section refers to criminal breach by a public servant, banker, merchant or an agent and the applicants did not fall in either of these categories.
The defence lawyer submitted that the police have wrongly valued the companies' properties based on the ready reckoner (RR) rates, whereas all these properties were in prime locations with high market values. Attachment of properties and their auction based on RR rates would only mean a longer wait for the depositors to get their money and would benefit a few land sharks who are after these properties, he argued.
The counsel furnished audited reports of DSK companies for the last three years and maintained that there was no evidence to suggest that money was siphoned off for other purpose.
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