Bombay high court gives last chance to DSK to deposit investors' funds

Mumbai: The Bombay high court while hearing the anticipatory bail application (ABA) of the promoters of DSK has given it up to January 25 as a last chance to deposit the first instalment of the Rs 200 crore that it owes investors. The promoters informed the court that two transfers of $40 lakh amounting to approximately Rs 51 crore had been initiated from abroad in the account of a group company of which the applicant is director.

Justice Sadhana Jadhav, who was hearing the ABA, was told by senior advocate Ashok Mundargi that the applicants had managed to arrange for Rs 51 crore, which is the amount of the first instalment from an international company. He submitted documents of the Singapore branch of Bank of Baroda, which showed that the transfer was initiated on January 17 and the same was expected to be credited in the account of DSK Digital, which is a group company, within 72 hours.

After perusing the documents, Justice Jadhav said that the court was satisfied with the bona fides and said that it would extend the date for the interim as an absolute last chance till January 25. The court also said that it would not entertain any arguments of the applicant on that date and would issue orders.

Mr Mundargi further said that while the DSK developers had outstanding dues of up to Rs 3,000 crore, their cumulative worth was Rs 10,000 crore in property and bank account holdings, however the same was sealed and hence a panel consisting of a retired high court judge should be set up to oversee the release and sale of properties so that the dues of banks and investors could be paid off.

While declining Mr Mundargi’s suggestion, the court directed the state to look at the option and to take instructions in this regard and file its reply in the next hearing.