“Rashesh Shah is a sweet talker; he wanted to usurp the studio, which was setup for small and big movie makers. I called him 100 times and he didn’t respond. In fact, he filed a cheque bouncing case with the EOW, NCLT [National Company Law Tribunal] and Debt Recovery Tribunal and tortured me immensely,” an audio clip by art director Nitin Chandrakant Desai states, revealing his harrowing state of mind, before he decided to take his own life.

The Raigad Police have found 11 such voice notes from his phone, in which Desai speaks about Edelweiss Asset Reconstruction Company (EARC) chairman Rashesh Shah and other officials, and how they allegedly tortured and misguided him, even though he requested for a one-time settlement. 

“These murderous people are trying to kill a Marathi artist. They have compelled me to do something I never thought [I would do],” the clip goes on to state. The police has recorded 15 statements in the case so far, and Desai’s wife Neha has corroborated his ordeal.

According to his wife, Desai felt the studio would be taken away from him as New Delhi’s NCLT has rejected his appeal on July 25. Three days later, Jitendra Kothari, threatened to take charge of the studio with personal bouncers. The Raigad Police have booked five persons under various sections of the IPC. The director, MD of EARC have been summoned for questioning on Tuesday morning.

Navi Mumbai: The FIR registered by police on charges of abetment to suicide in art director Nitin Desai’s death names Rashesh Shah, Edelweiss ARC’s (Asset Reconstruction Company) non-executive and non-independent director, and its MD and CEO Raj Kumar Bansal as accused, among others, reports George Mendonca. Three others named as accused are Keyur Mehta and Smit Shah, of ECL Finance, a subsidiary of Edelweiss, and Jitendra Kothari, the administrator appointed by the National Company Law Tribunal (NCLT) as interim resolution professional.

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Navi Mumbai: Police said Edelweiss group’s MD Raj Kumar Bansal has been served a notice for seeking information and asked to visit Khalapur police station at 10am on August 8 to submit details.

Two days after film art director Nitin Desai allegedly died by suicide at his Karjat studio, his wife Neha registered an FIR of abetment to suicide at Khalapur police station on Friday. Several top executives of the Edelweiss group have been named.

In the FIR, Neha Desai has alleged the accused had pressured her husband to recover an outstanding loan and were attempting to take over his ND Film World Studio in Karjat for defaulting on loan repayment. Desai owed a total of Rs 252 crore to the creditor firm.

Edelweiss ARC’s company secretary Tarun Khurana stated the firm followed all legal processes as mandated by RBI and has not acted in any manner outside of the legal framework. “Neither was the interest rate charged excessive nor was there at any time undue pressure being put on the borrower for recovery,” he stated.

Edelweiss ARC further stated, “In order to clarify some misgivings, we would like to state that Nitin Desai’s company was extended financial assistance in 2016 and 2018 for setting up theme park and working capital. Desai’s company encountered financial difficulties since 2020 and various attempts to improve the financial situation of his company did not near fruit. Desai’s company was eventually referred to NCLT in 2020 and admitted in NCLT in July 2023. We will fully cooperate in the police inquiry.”

The investigating officer, Vikram Kadam, has also asked N D Studio’s legal advisor, financial advisor and accountant to furnish loan details. Statements of 15 witnesses have been recorded.

In the FIR, Neha Desai has stated Nitin Desai had taken a Rs 150 crore loan from ECL Finance in November 2016 and a Rs 35 crore loan in February 2018 and mortgaged ND Studio’s land with ECL Finance.

She has alleged that despite paying EMI regularly, in April 2019, ECL officials pressured Desai to pay 6 months’ EMI for May to October 2019 in advance. Desai sold his Powai office and paid advance EMI, the FIR has stated.

Thereafter, Desai regularly paid EMI till February 2020 but in March a crisis arose due to the pandemic. But according to her complaint, ECL’s Keyur Mehta and Smit Shah kept pressuring Desai for repayment. Desai even offered one-time settlement of loan as he had investors for N D Studios but the four accused officials of Edelweiss and ECL did not revert. She alleged Jitendra Kothari, appointed by NCLT as administrator, favoured ECL Finance to ensure it took possession of N D Studios.

A 21-gun salute by the Raigad police to the departed soul

Mumbai: Two days after art director Nitin Desai died allegedly by suicide at his sprawling studio in Karjat, five employees of the financial group he owed money have been booked for abetment to suicide.

His widow Neha Desai has submitted a written complaint to police alleging that employees of ECL Finance and the Edelweiss Group were pressuring her husband to recover an outstanding loan. Her complaint says Desai was fed up with the harassment and hence took the drastic step of ending his life. In all, Desai owed Rs 252 crore.

The Khalapur police had recorded an accidental death case. In the wake of her complaint, police have registered an FIR under IPC sections 306 (abetment to suicide) and 34 (acts by several per-sons in furtherance of common intention) against the five accused staffers and others, said Raigad police.

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Mumbai: Film art director Nitin Desai’s firm ND’s Art World, which managed his studio, took a loan of Rs 150 crore in two instalments in 2016 and Rs 31 crore in 2018. Repayment had stalled since January 2020 and the pandemic had worsened the firm’s financial situation. The amount that was due included unpaid interest. In all, recovery due was Rs 252 crore. The National Company Law Tribunal in Mumbai had recently allowed a petition by the Edelweiss group to initiate corporate insolvency proceedings against ND Art World.

On Thursday, deputy chief minister Devendra Fadnavis had told the Maharashtra assembly that Edelweiss Asset Reconstruction Company's role in the incident would be probed.

The suicide abetment case is now being investigated by Vikram Kadam, sub-divisional police officer (SDPO), Khalapur.

Raigad additional superintendent of police Atul Zende said, “As part of the investigation into the abetment of suicide case, the accused will be summoned to Khalapur police station by the investigating officer for recording their statements.”

Zende added, “Before committing suicide, Nitin Desai sent 11 audio clips to his advocate Vrunda Kumbhar. We are awaiting the forensic lab report of those audio clips to verify his voice, which will provide vital evidence in the case.”

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The Raigad police on Friday said they have booked four officials of Edelweiss group for allegedly harassing and mentally torturing art director Nitin Desai, leading to his suicide. They will now be summoned for questioning, cops added. The FIR has been filed under IPC Sections 306 (abetment of suicide) and 34 (common intention) at Khalapur police station based on the complaint lodged by Nitin’s widow Neha Desai.

“According to the written complaint given by Neha Desai, both the companies consistently mentally tortured Nitin Desai. The torture led to the suicide of the Nitin Desai,” Superintendent Somnath Gharge of Raigad police said.

Those booked are—Edelweiss Finance CEO and Chairman Rashesh Shah; Edelweiss Asset Reconstruction Company (ARC) officials Keyoor Mehta, Smit Shah and R K Bansal; and Jitendra Kothari, an insolvency professional appointed by the NCLT, Mumbai.

“...soon the COVID-19 pandemic hit the entertainment industry and shoots were stalled. Nitin Desai knew this will lead to defaults and pilling up of interest. He contacted the borrowers and asked about a one-time settlement,” states the FIR. Nitin was ready to pay the settlement amount, but Edelweiss ARC kept postponing their meetings, according to the FIR.

“Nitin begged for settlement, but without intimating him, Edelweiss ARC went to NCLT and even to Raigad collectorate,” it adds. In 2019, Nitin sold is Powai office to pay off six months of EMI, according to the FIR.

Nitin’s company ND’s Art World Pvt Ltd had mortgaged a total of 43 acres of land, on which his ND Studio 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. The proposal has been pending before the collector for the past two months. Desai had named the officials in a voice note he had left, accusing Edelweiss ARC of trying to usurp his studio. 

It is alleged that on July 29, Jitendra Kothari told Nitin’s lawyer and Neha that he is sending his bouncers to “to look after” N D Studios.

Nitin told his wife that no new assignments are coming to the studio because of all this and hence they have incurred a loss of Rs. 100 crore, according to the FIR.