In twenty separate cases, the District Consumer Commission, Central Mumbai has issued orders directing the refund of ₹94.75 lakh in deposit money, along with promised interest, to various depositors who invested in different firms represented by D. S. Kulkarni as the owner or director. The total amount deposited by the depositors ranged from ₹1 lakh to ₹20.50 lakhs, and they were promised interest rates between 11 percent and 13 percent. The firms involved in which D. S. Kulkarni held ownership or directorship positions are D. S. Kulkarni and Associated, D. S. Kulkarni and Brothers, D. S. K Constructions, D. S. K. Enterprises, D. S. K and Sons, D. S. Kulkarni and Sons, and D. S. Kulkarni Developers Limited. It's important to note that not all groups were involved in each case.
The Commission has determined that D. S. Kulkarni breached the trust by failing to return the deposit amounts after their maturity, constituting a deficiency in service and unfair trade practice. As a result, the commission has ordered a compensation of ₹9.4 lakh to be paid to the depositors, amounting to approximately 10 percent of the deposited amount, as a form of redress for the mental agony they endured. Additionally, each depositor will receive ₹10,000 towards litigation costs. It is worth mentioning that these orders were passed ex-parte since the allegations remained unchallenged.
The orders were issued on February 20, 2023, by S. S. Mhatre, the president, and MP Kasar, a member of the District Consumer Disputes Redressal Commission, Central Mumbai. These orders were based on complaints filed by Narayan Warunjikar, Prakash Warunjikar, Nilima Mohokar, Chandrakala Warunjikar, Sashikant Khire, Sushma Mhalgi, Shobha Ratnakar, Sudhir Date, Prabhakar Warunjikar, Suhas Athalye, Purushottam Wagh, Arun Kenjale, Manasi Athalye, Shekhar Bhonde, Sudha Warunjikar, Shailaja Warunjikar, Bhaskar Dobhale, Madhuri Kenjale, Mohini Dhobale, Nikhil Tikhe, and Jayshree Tikhe, who are residents of Pune. The commission stated that since DS Kulkarni had an office in Mumbai near Shivaji Park, it fell under authority.
The investors deposited their savings with DS Kulkarni at various times, starting from 2013. Each investor was promised different interest rates at separate times. However, despite the maturity period having passed, they did not receive their money as the cheques they received were not cleared. Instead of allowing them to withdraw the money, they were instructed to leave it untouched for a further period. Dissatisfied with this arrangement, the investors filed a complaint with the police, leading to a case being registered under various sections of the Indian Penal Code (IPC) and the Maharashtra Protection Of Interest Of Depositors Act (MPID).
After the notice sent by post was returned, a notice was published through a newspaper advertisement. During the hearing, it was revealed that DSK, through his own signature in a letter to investors, expressed that the "transactions generate trust and establish strong relationships. Some of you have been depositing money with us for 30 years, some for 25 years, and some for 5-10 years." In the letter, he proposed that instead of seeking a refund, the deposits should be renewed.
The Commission emphasised that DSK utilised the deposited money for his projects. Referring to relevant legal precedents, the Commission determined that the complainants were consumers and that despite the maturity of their deposits, they did not receive their money back, constituting a deficiency in service and unfair trade practice. In accordance with administrative orders, cases have been filed against the opposing parties, and the Commission mandated that they provide the deposit money, along with the promised interest, within 30 days of the order as they have already breached the trust of the depositors.
Depositors to get refund:
1. Narayan Warunjikar - Rs 17,75,000 (different deposits since 2014)
2. Prakash Warunjikar - Rs 3,00,000 ( (different deposits since 2015)
3. Nilima Mohokar - Rs 2,00,000 ( (different deposits since 2016)
4. Chandrakala Warunjikar - Rs 20,50,000 ( (different deposits since 2015)
5. Sashikant Khire - Rs 4,00,000 ((different deposits since 2015)
6. Sushma Mhalgi - Rs 1,50,000 ((different deposits since 2016)
7. Shobha Ratnakar - Rs 1,25,000 ((different deposits since 2016)
8. Sudhir Date - Rs 2,50,000 ((different deposits since 2014)
9. Prabhakar Warunjikar - Rs 3,50,000 (different deposits since 2015)
10. Suhas Athalye - Rs 1,75,000 (different deposits since 2016)
11. Purushottam Wagh - Rs 2,00,000 (different deposits since 2014)
12 Arun Kenjale - Rs 3,50,000 (different deposits since 2014)
13. Manasi Athalye - Rs 2,75,000 (different deposits since 2016)
14. Shekhar Bhonde - Rs 7,50,000 (different deposits since 2014)
15. Sudha Warunjikar - Rs 1,25,000 (different deposits since 2015)
16. Shailaja Warunjikar - Rs 2,55,000 (different deposits since 2015)
17. Bhaskar Dobhale - Rs 10,00,000 (different deposits since 2017)
18. Madhuri Kenjale - Rs 1,00,000 (different deposits since 2014)
19. Mohini Dhobale - Rs 4,75,000 (different deposits since 2014)
20. Nikhil Tikhe and Jayshree Tikhe - Rs 1,70,000 (different deposits since 2014)
