by Deepak Sawant 
Mumbai PMLA court blocks Encore ARC’s bid to auction DSK properties auction rejection , protecting thousands of investors in money laundering case. Key details on MPID, PMLA attachments. (148 chars)
Court Rejects ARC’s Auction Bid
Special Judge R B Rote ruled that the mortgaged properties remain attached under both the Prevention of Money Laundering Act (PMLA) by the Enforcement Directorate (ED) and the Maharashtra Protection of Interest of Depositors (MPID) Act by the state. The decision highlights risks of “irreparable loss” to depositors who lost life savings in DSK’s alleged scams, as no charges have been framed and MPID confirmations are pending.
DSK Group’s Fraud Background
The DSK group, led by Deepak Sakharam Kulkarni, faced FIRs in late 2017 for cheating via eight partnership firms under D S Kulkarni Developers Pvt Ltd, collecting crores from the public. ED filed an ECIR in March 2018, provisionally attaching properties in February 2019 (confirmed August 2019), amid offences like criminal breach of trust under IPC and MPID.
ARC’s Failed Arguments
Encore ARC, assignee of Rs 19.52 crore loans from Kalyan Janata Sahakari Bank, invoked SARFAESI Act priority under Section 26-E, claiming pre-2006 mortgages weren’t “proceeds of crime”. A PMLA tribunal had allowed staking claims pre-trial with excess proceeds to ED, but ED, accused, EOW, and MPID opposed, leading to rejection as premature.
Investor Protection Priority
This ruling safeguards duped investors over secured creditors, reflecting stricter oversight in real estate fraud cases amid Mumbai’s regulatory crackdowns.
