Mumbai: Edelweiss officials claim Nitin Desai delayed loan repayments, deny abetment

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Senior officials from Edelweiss, accused of abetting the suicide of renowned art director Nitin Desai, stated in court that Desai had begun delaying his loan repayment schedules from the end of 2018.

Senior counsel Amit Desai, representing Edelweiss Financial Services chairman Rashesh Shah, Edelweiss ARC MD and CEO Raj Kumar Bansal, and two other company officials, informed the Bombay High Court that Nitin Desai had taken a total loan of Rs 181 crore.

The senior counsel emphasized that there was no intention or instigation on the part of the accused to abet Nitin Desai's alleged suicide.

The court heard petitions from the officials and Jitender Kothari, appointed as an interim resolution professional by the National Company Law Tribunal (NCLT), seeking to quash the FIR.

The petitioners requested interim protection from coercive action and for the investigation to be stayed pending the hearing of their pleas.

After hearing brief arguments, the bench decided to continue hearing the matter on Monday (August 21).

Amit Desai then requested interim protection for the petitioners from coercive action, but the bench refused, stating that the matter would be addressed during the next hearing.

In 2016, Nitin Desai had taken a loan of Rs 150 crore from Edelweiss' company ECLF for general corporate purposes, the court was told. Part of the money was used to repay earlier loans. An additional loan of Rs 38 crore was sought in 2018, of which Rs 31 crore was sanctioned and disbursed.

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According to Amit Desai, Nitin Desai started delaying repayment schedules at the end of 2018. The court sought clarification on whether the 2016 loan was repaid before the additional loan amount in 2018.

The senior counsel stated that repayment between 2016 and 2018 was on schedule, but from the end of 2018, there were delays in repayment.

Amit Desai referred to earlier judgments that quashed the abetment of suicide cases, highlighting the absence of constant instigation and men's rea (intention) in this case.

Nitin Desai (57), known for his work on acclaimed Bollywood films, was found dead on August 2. An abetment of suicide case was registered against Edelweiss officials after his death. His company, ND's Art World Pvt Ltd, had defaulted on loan repayments, leading to insolvency proceedings. (Agencies)