Mumbai: Creditor’s role to be probed in Nitin Desai’s suicide

Nitin Chandrakant Desai at ND Studio, in Karjat, in 2007. File Pic/Nimesh Dave

Home Minister Devendra Fadnavis on Thursday announced in the Legislative Assembly that a probe would be ordered into the roles of Edelweiss CEO Rashesh Shah and his financial company in the suicide of celebrated art director Nitin Chandrakant Desai.

The announcement came in response to BJP legislator Ashish Shelar's demand to expand the scope of investigation in Desai's death that had shocked the art, film and cultural circles. Shelar said the four-time national award winner was a brand himself, earning an indomitable reputation in the field of art direction. "But he had to end his life in an unfortunate way. He had taken a loan of Rs 180 crore against ND Studio.

The loan amount increased to Rs 252 crore owing to interest. This brings forward the functioning of the lending system by Rashesh Shah and Edelweiss ARC. So the death should not be treated and investigated as a mere accident, but the company's interest rate and recovery methods must be probed by a special investigation team," said Shelar. "Give Desai justice. These companies are modern avatars of loan sharks, and I have information about a couple of other matters that I will pass on to the home minister," he stated further.

Fadnavis accepted the demand and told the House about his intentions to expand the probe. He also said legal aspects on how Desai's N D Studio at Karjat near Mumbai can be preserved or taken over by the government will be examined. Desai's company ND's Art World Pvt Ltd had borrowed Rs 185 crore through two loans from ECL Finance in 2016 and 2018, and troubles with repayments started from January 2020. Desai's company had defaulted on a R252-crore loan to its financial creditor, according to an insolvency petition filed in a bankruptcy court last week. ECL Finance is a non-banking finance arm of the Edelweiss Group.

With inputs from Agencies