Nitin Desai death: Raigad police find loan documents ‘incomplete’

Desai established ND Studios in 2005. Pic/Satej Shinde

The four officials of Edelweiss Asset Reconstruction Company Limited who were questioned on Tuesday in connection with the suicide of renowned art director Nitin Desai, have been called by the police again on Friday. The investigating officers have found that documents related to the two loans taken by Desai are incomplete and inadequate, and the police have asked them to bring more necessary documents on Friday. The questioning of the officials went on for 8.30 hours on Tuesday, wherein they claimed no undue pressure was exerted on Desai regarding his loans, and all the actions taken by the company are according to the law.

Four officials of Edelweiss and one insolvency professional were booked under IPC sections 306 (abetment of suicide) and 34 (common intention) on Friday at Khalapur police station. The officials of Edelweiss were summoned on Tuesday morning with documents related to Desai's loans for questioning by cops. The cops had already asked legal advisors and account officials of ND Studios to present documents related to the loans to them.

Nitin Desai was found dead in his studio on August 4. Pic/PTI

According to the summons, Phanindranath Kakarla, managing director of Edelweiss Asset Reconstruction Company Limited, and three other officials (not those who were booked) arrived at the Khalapur police station around 10 am. Additional SP Atul Zende and Dy SP Vikram Kadam questioned the officials. They were asked to bring documents related to the loans borrowed by Desai and all the notices and bank statements related to them.

"Officials provided the documents and the scrutiny of the same went on from 10 am to 6.30 pm. During it we found some documents are incomplete and inadequate as well. We have asked the MD to bring more documents and have summoned him again on Friday at 10 am," said Somnath Gharge, superintendent of police, Raigad.

Edelweiss officials, during questioning, claimed there was no high-handedness and refuted allegations of unnecessary pressure on Desai. They also justified the actions taken by the company to recover the loans and said the actions were in accordance with law, said a source.

The loans

Desai's company ND's Art World Pvt Ltd had mortgaged a total of 43 acres of land, on which his ND Studios stands, and borrowed R185 crore through two loans from ECL Finance in 2016 and 2018. ECL Finance is a non-banking finance arm of the Edelweiss Group. Later on, Art World's debt was transferred to Edelweiss ARC, which had appealed in the National Company Law Tribunal (NCLT) for insolvency. Edelweiss had sent a proposal to the Raigad collector to seize the mortgaged land.