DSK to inform Bombay HC over repaying plans

Mumbai: The Bombay high court on Thursday gave owners of DSK Developers time till Monday to give an undertaking whether they were in a position to pay 25 per cent of the outstanding Rs 200 crore amount they owed to investors.

The HC, while rejecting the developer’s plea to free six properties that were seized by police so that they could sell them and recover the amount to be paid to investors, said that these properties were encumbered and hence, it would not serve any purpose to direct the police to free them. The court said that if the developer failed to give an undertaking by Monday, it would have to nix interim relief granted to the promoters against arrest.

Following Justice Ajey Gadkari’s directions to spell out the repayment plan, owners of DSK, through senior advocate Ashok Mundargi, informed the court of six properties whose release they sought from the police so that the same could be sold. Advocate Mundargi told the court that of the six, five were showrooms while one was a DSK dream project property that they intended to sell to pay off the Rs 200 crore they owed to investors. The properties are located in Pune, Fursungi, Satara, Solapur and Ahmednagar.

The court however rejected the developer’s plea and said DSK should submit details of properties with a clear title. Justice Gadkari said, “You will seek time to get clearance from banks that have extended loans on the said properties. It will become a lengthy process and hence, we cannot allow it.”