DSK Fraud Case: Prosecution Seeks Auction Of 131 Properties To Repay ₹610 Crore To 11,102 Investors

Mumbai, August 20, 2026: After the direction from the High Court in the alleged real estate fraud linked to Deepak Sakharam Kulkarni (DSK) group, the prosecution has moved an application seeking permission to auction 131 properties owned by other companies linked to the DSK group. The funds would be used to settle claims of investors.

Special Public Prosecutor Shishir Hire has approached the court seeking to make the attachment of the 131 properties absolute so that the agency can auction these properties.

The funds received after the auction would be used to clear dues of Rs 610 crore of 11,102 investors who had collectively invested a sum of Rs 610 crore in various schemes launched by the DSK group.

It is stated that the responsibility for recovery of the invested money of these 11,102 investors lies with the competent authority and the Crime Branch. Hence, the agency wants to conduct auctions of these properties to refund the money to affected investors.

Prosecution's Case Against DSK Group

As per the prosecution case, the accused dishonestly induced the gullible public and collected funds from them in the guise of different deposit schemes, wherein they promised annual interest rates of 12.5 per cent on fixed deposits and 10.5 per cent to 22 per cent on unsecured loans.

The agency claimed that the group had 59 companies which offered these various schemes and collected crores of rupees during the period from 2006 to 2017 from the general public, of which Rs 1,129 crore is said to be proceeds of crime.

In its application, the prosecution has said that the agencies have identified a total of 463 properties, out of which nine properties were released, while 323 properties belonged to D. S. Kulkarni Developers Limited (DSKDL), which is under Corporate Insolvency Resolution Process (CIRP) initiated on the application of Bank of Maharashtra before the NCLT.

The prosecution has said that it has no objection to the release of these 323 properties for CIRP to clear dues of other debtors. The agency claimed that the 131 properties which are sought to be auctioned belonged to Deepak Kulkarni and his family members and their partnership firms.

DSK Group Opposes Auction Plea

The plea, however, was opposed by Viral Babar, advocate for the DSK group, who contended that the application is not even filed by the Competent Authority, which is vested with the powers to make the property absolute and clear the dues of the investors. He also pointed out that the mandatory provisions of the special MPID Act are not followed by the prosecution.

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Meanwhile, Chinmay Page, advocate for Chaitanya Sevabhavi Sanstha, refused to comment till the application is decided by the court.

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