Chrome 56 has a breaking change that impacts Kendo's drag and drop widget: https://developers.google.com/web/updates/2017/01/scrolling-intervention The fix seems trivial - a CSS rule like "div[data-role=draggable] { touch-action: none; }".
this breaks pinch-zoom functionality
I think that we fixed that - the demo works as expected: http://demos.telerik.com/kendo-ui/dragdrop/index Did you upgrade to the latest version?