Mumbai: Special PMLA Court Rejects Plea To Auction 131 DSK Group Properties Linked To ₹610-Crore Investor Dues
· Free Press Journal
Mumbai, October 15, 2026: The special Prevention of Money Laundering Act (PMLA) court has rejected a plea filed by the prosecution seeking permission to confiscate and auction 131 properties attached during the investigation into the Deepak Sakharam Kulkarni (DSK) Group case but not owned by DS Kulkarni Developers Ltd (DSKDL). The court instead directed the competent authorities to provide details of the properties, assets and amounts due.
Court Says Prosecution Must Approach Competent Authority
While rejecting the plea, the court asked the prosecution to approach the competent authority first and move the application through it. Holding that the application filed by the prosecution was not maintainable, the court said, “The Court does not dispute that the Investigating Agency - police have an important role in the investigation of the offence and in assisting the Competent Authority in identifying, tracing and securing properties. However, the investigative role of the police cannot, by itself, substitute the statutory role of the Competent Authority.”
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“The Competent Authority is not merely a formal or ministerial authority; the statutory scheme vests in its control over the properties attached under Section 4 of MPID Act, specifically requires it to approach the Designated Court for further orders,” the court said.
Court Seeks Property-Wise Details And Repayment Plan
The court directed the competent authority to submit a comprehensive property-wise statement or schedule covering every property proposed to be dealt with. The competent authority must also furnish a complete list of all properties currently attached under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act (MPID Act).
The court also sought details of the total amount of deposits allegedly collected, the amount due to depositors, the total value of the attached properties and how the proposed sale would facilitate repayment.
Prosecution Seeks Auction To Clear Rs 610-Crore Dues
The prosecution had claimed that 463 properties belonging to the accused persons and companies had been identified and secured. Of these, nine properties had been released by orders of the court and the government, while 323 properties were in the name of DSKDL. The prosecution claimed that the remaining 131 properties were in the names of the accused, their family members, firms and companies.
The prosecution had therefore sought permission to auction these properties to clear dues of Rs 610 crore owed to 11,102 investors.
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Mumbai: Special PMLA Court Rejects Release Of 1,741 Acres Of Land Attached In HDIL-PMC Bank ScamThe plea was opposed by the lawyer representing Deepak Kulkarni and his family members, who argued that the competent authority appointed by the Maharashtra government under the MPID Act had control over the attached properties as their sole legal custodian.
The plea was also opposed by Chaitnya Sevabhavi Sanstha, an organisation formed by investors, which argued that the application had not been filed under the seal and authority of the competent authority.
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