On Thursday, August 3rd, Maharashtra Deputy Chief Minister Devendra Fadnavis announced an investigation into the private firm that extended a loan to Nitin Desai. This step aims to ascertain whether the firm’s actions had contributed to Desai’s potential mental distress or the imposition of exorbitant interest rates.
The demise of filmmaker Nitin Desai, discovered on August 2nd at his ND studio in Karjat, prompted these inquiries. The director was found deceased by hanging, with initial indications suggesting a possible suicide, currently under investigation by the police.
According to a PTI report, Fadnavis, addressing the state legislative assembly, discussed the legal aspects surrounding the preservation or potential government takeover of Desai’s ND Studio in Karjat, revealing that these matters would undergo examination.
Further details from the report highlight that ND’s Art World Pvt Ltd, the firm connected to Desai, acquired two loans totaling Rs 185 crore from ECL Finance in 2016 and 2018. Repayment issues arose in January 2020.
A recent insolvency petition submitted to a bankruptcy court indicated that Desai’s business had defaulted on a loan of Rs 252 crore from its financial creditor. The entity in question, ECL Finance, falls under the non-banking finance division of the Edelweiss Group.
During the assembly session, BJP MLA Ashish Shelar lamented, “It is disheartening that the recipient of four National Awards had to conclude his life in this manner. He had initially borrowed Rs 180 crore for N D Studio, a figure that escalated to Rs 252 crore. This brings to light the functioning of the lending system by Rashesh Shah and Edelweiss ARC Company. Only by examining these aspects can we do justice to Nitin Chandrakant Desai.”
