Courtesy TEAM_BHP.COM
DS Kulkarni has through his actions and his myriad misrepresentations - destroyed wealth of the many investors who had reposed faith in his company. He launched his Manjiri scheme - Dream City at Rs 7000 per sqft - a very arrogant price point. He is symptomatic of real estate developers who take money for construction finance and deploy it elsewhere. These kind of rubbish individuals with no moral or ethical values need to be behind bars. I am saying this with immense humility and i have so many friends and their family members who have lost their savings due to the actions of this person. I hope the powers that be - met out the strictest punishment under the law of the land and set an example so that no developer in Maharashtra - will ever think of fund redeployment ever in his or her life.
I believe, Market always has positive as well as negative news. The market tends to focus either on positive or negative aspect at a time. Now the company is in the negative spiral, so it is not suspiring that the media is flooded with negative news. Having said that, DSK in trouble because of there past actions, so it is not surprising.
A decade back, when there was a boom in real estate stock and infrastructure stocks (sounds a lot similar like today, but I am referring to a period of 2003-2007) DSK made the most of it. They raised money from the market (I think QIP) and disappear (in term of stock, which went into a tailspin after 2007/08 ).
If the management’s integrity is in question, I am not sure what extent we can rely on a land bank or other measures.
There is an old saying in the market –“A rising tide lift all boats”. DSK fits the bill perfectly. I would be careful- very very careful about the company.
Risk of investing in “chor” companies (as Porinju calls them 
)
Moneylife article with the full NCLT order
What I think happened in DSK ?
I think upto 2006-7 after doing great business driven by realestate boom , the company owners became greedy for doing something big. This is when they got into setting up SEZ and tieup with some Israeli company , They raised huge funds from all possible sources , put all their eggs in one basket, breached all accounting norms and bought land at sky rocket prices.
The dream came to an end when SEZ benefits were curtailed and Israeli company withdrew. This put the owners in a spiral, of borrowing more from all possible sources to pay back earlier lenders and it seemed to be working … 2008 crisis made things difficult and stock price crashed. After this they kept borrowing even as illegal FDs from individuals to milk their brand. Borrowing worked so well that they believed there is no limit for them.
They were hopeful that their land investments will work out but every trial took 4-5yrs and they kept paying hefty interest. Final goal was to sell it as project called Dream city … Till then market was sluggish, then came demonitization and rera that just killed all hopes.
The perception that all the money was shipponed off by relatives is not correct though each relative took nothing less then 10 crore per year for their loyalty to use their accounts and name for rotating funds, buying land.
The accident of DSK owner created panic and borrowers who lent purely on his name got the message that their money is not safe. The money supply stopped and the pongi company came to an end.
Selling of land banks and assets will not yield even 1/3rd for lenders and shareholder shall have absolutely no hope to get even a penny.