Renowned Indian art director Nitin Desai’s tragic suicide has raised questions about financial practices and the actions of financial services company Edelweiss Group. Desai, born on August 9, 1965, was a highly decorated art director, film production designer, and television producer, known for his work in Marathi and Hindi films such as Hum Dil De Chuke Sanam, Lagaan, Jodhaa Akbar, Devdas, and Prem Ratan Dhan Payo. He was the recipient of multiple National Film Awards and Filmfare Best Art Direction Awards throughout his career. In 2005, Desai opened his own ND Studios in Karjat, Navi Mumbai.
Desai’s untimely demise on August 2, 2023, has brought to light his company’s financial struggles and its significant debt of Rs 252 crore. Edelweiss Group, however, has vehemently denied any wrongdoing and insisted that its actions were fully compliant with the legal and regulatory framework set by the Reserve Bank of India (RBI).
According to Edelweiss, the loans extended to Desai’s company, ND’s Art World Pvt Ltd, were originally provided by ECL Finance and later taken over by Edelweiss Asset Reconstruction Company (EARC) for resolution. The company emphasized that ECL Finance and EARC followed the guidelines and regulations laid out by the RBI and adhered to the principles of the Insolvency and Bankruptcy Code. It asserted that the pursuit of recoveries on non-performing assets (NPAs) is not only a right but an obligation for creditors.
Edelweiss maintained that the interest rates charged by ECL Finance were in line with prevailing market rates. The loans, totaling Rs 185 crore, were primarily allocated for capital expenditure related to a theme park, repayment of existing debts, and general corporate purposes. The company stressed that its actions were lawful and expressed deep sorrow over the tragic events. It also expressed its willingness to cooperate fully with the authorities in their investigation, hoping for a resolution that brings closure to this unfortunate incident.
Following concerns about the interest rates charged and the possibility of Desai being under significant mental stress, an investigation was initiated into his suicide. Maharashtra Deputy Chief Minister Devendra Fadnavis raised these concerns, leading to an inquiry into the matter.
Desai’s distress over financial problems was evident in audio recordings unearthed by the Maharashtra police after his death. These recordings have been sent for forensic analysis to provide further insight into his state of mind.
While Edelweiss Financial Services maintains its adherence to legal and regulatory requirements, questions surrounding the suicide case of Nitin Desai continue to be scrutinized. Edelweiss ARC acquired the asset portfolio from CFM Asset Reconstruction Company through an auction process after taking over the loans from ECL Finance. Subsequently, EARC’s admission under the Insolvency and Bankruptcy Code was approved by the National Company Law Tribunal (NCLT) in Mumbai. Desai appealed against this decision, seeking relief from insolvency proceedings, but his appeal was dismissed by the National Company Law Appellate Tribunal (NCLAT).
