These auctions will yield only a part of what the DSK Group owes to its investors, banks and financial institutions. As per the provisions, the recovery and payback of the dues under the MPID Act is in the purview of the court.
A special court in Pune, which is hearing cases under the Maharashtra Protection of Interests of Depositors Act, has allowed the Maharashtra government to auction the 13 high-end vehicles seized from DSK Group during the ongoing investigation against the business group.
The DSK Group, its chairman D S Kulkarni, many of his family members and office-bearers of the group are being investigated in connection with a fraud of over Rs 2,000 crore.
In February this year, the Enforcement Directorate had attached assets worth Rs 904 crore of DSK Group as part of its probe against the group under the Prevention of Money Laundering Act. As part of the probe, police had seized several high-end vehicles, including a Porsche, two BMWs, an Augusta bike and a Camry, owned by the group.
EXPLAINED
DSK Group’s other properties may be auctioned
The soon-to-be auctioned vehicles were seized by the police in February and March last year. It is possible that a sizeable part of the DSK Group’s other properties, attached by the Enforcement Directorate, may also be auctioned in the future, if and when the legal formalities pertaining to it are completed. But these auctions will yield only a part of what the DSK Group owes to its investors, banks and financial institutions. As per the provisions, the recovery and payback of the dues under the MPID Act is in the purview of the court.
The Maharashtra government, through special Public Prosecutor Praveen Chavan, had moved the court to seek permission to auction the 13 vehicles seized by it. After hearing arguments from both sides, the court on Thursday ruled, “Investigating Officer is hereby permitted to sell following vehicles in Public Auction which will be conducted in presence of Judicial Magistrate First Class, Pune, and sale proceeds of it are credited in the court. The investigating officer is hereby directed to prepare a detailed report of the auction and shall submit it in the court.”
