In a significant development surrounding the unfortunate death of Bollywood art director Nitin Desai by suicide, a finance executive of ECL Finance has been served a notice by the police. The notice seeks information about loans provided to Desai’s company, ND’s Art World Pvt Ltd, which had borrowed ₹185 crore through two loans from ECL Finance, promoted by Edelweiss Group, in 2016 and 2018. Troubles with loan repayments began from January 2020, leading to financial difficulties for the company.
The police at Khalapur in Maharashtra’s Raigad district have summoned the finance executive to the police station for further inquiries on Tuesday. Authorities are gathering details about the loans from various sources, including the lawyer, financial adviser, and accounts of ND Art World. The police have already questioned 15 witnesses and recorded their statements.
ND Art World had defaulted on a ₹252 crore loan repayment to creditors, leading the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate insolvency proceedings. In her first information report (FIR), Nitin Desai’s wife, Neha, alleged that the officers of the company were responsible for causing severe mental stress to her husband. She claimed that the employees of the creditor firm harassed her husband over loans, ultimately resulting in his tragic death by suicide.
Nitin Desai was a renowned art director in Bollywood, having worked on notable films such as “Lagaan” and “Jodhaa Akbar.”
Edelweiss Asset Reconstruction Company Ltd (ARC), a part of the Edelweiss Group, expressed deep sadness over Nitin Desai’s demise and clarified that his company was extended financial assistance in 2016 and 2018 for setting up a theme park and working capital. However, financial difficulties arose in 2020, and attempts to improve the company’s financial situation were unsuccessful. As a result, the company was referred to the NCLT in 2022 and admitted in July 2023.
Edelweiss ARC asserted that they followed all legal processes mandated by the Reserve Bank of India (RBI) and acted within the legal framework. They denied any excessive interest rates or undue pressure on the borrower for recovery, stating that they followed their own detailed procedures through established legal channels.
The case remains under investigation, with authorities looking into the circumstances that led to Nitin Desai’s tragic death and the financial challenges faced by his company.
Sources By Agencies