Fadnavis says probe will look into creditor’s role in Nitin Desai’s suicide case

Devendra Fadnavis said the investigation will also ascertain if there was any attempt by the firm to pressurise Nitin Desai or forcefully take over ND studio.

MUMBAI: A thorough probe will be conducted into the death of 57-year-old art director Nitin Chandrakant Desai including allegations of abetment to suicide, Maharashtra deputy chief minister Devendra Fadnavis told the state assembly on Thursday. Desai was found dead at his ND Studio in Karjat on August 2.

Maharashtra deputy chief minister Devendra Fadnavis during the monsoon assembly session in Mumbai on Thursday (HT Photo/Anshuman Poyrekar)

The death of the award-winning art director came a week after a tribunal ordered bankruptcy proceedings against his company ND’s Art World Pvt Ltd on a plea by Edelweiss Asset Reconstruction Company Limited after Desai’s company failed to repay a loan amount of ₹252 crore.

Fadnavis, who holds the home department, said the investigation will also ascertain if there was any attempt by the firm to pressurise Desai or forcefully take over his studio.

“Desai was under debt and kept his studio on a mortgage. The Edelweiss ARC (Asset Re) angle will also be incorporated in the ongoing probe in the suicide case,” Fadnavis told the state assembly. He added: “We will see if deliberate attempts were made by (Edelweiss) ARC to take over his studio or if he was pressured by any means. We will also investigate if an improper rate of interest was levied on the loan taken by him”.

Fadnavis said the government will also look into the options to preserve ND Studio in Desai’s memory.

Fadnavis was responding to demands for a probe against the private lending firm by Bharatiya Janata Party’s Bandra MLA Ashish Shelar who sought the constitution of a special investigation team (SIT) and accused the firm and its top functionaries of acting as “modern-day moneylenders”.

The BJP legislator said there were audio clips of conversations between the firm officials and Desai and stressed that these needed to be investigated.

Former chief minister Ashok Chavan too demanded an investigation and asked the state government to take over ND Studio. Fadnavis said he could not immediately commit but assured members that he will get the options examined. “We will study the legal aspects to see how it can be conserved or taken over by the state government as it was set up by a Marathi person.”

Desai’s death was also raised in the state legislative council by BJP legislator Pravin Darekar who sought registration of a criminal case against the firm. “Desai told me that he took a loan of ₹150 crore and with interest, the entire amount increased to ₹250 crore. I had called him to my bank, Mumbai District Cooperative Bank, but the amount to be repaid was huge.’’

Chief minister Eknath Shinde also tried to intervene, he said, recalling that Desai had helped with designs for many state events including oath events of chief ministers.

Congress member Bhai Jagtap suggested the government repay the loan and retain the studio, a view that was echoed by Shiv Sena’s Sachin Ahir as well.

Edelweiss Group chief executive officer Rasesh Shah did not respond to HT’s requests for comment. Edelweiss ARC later issued a statement condoling Desai’s death and explaining its position.

“We are deeply saddened by the demise of Nitin Desai and express our deepest condolences to his family as they navigate through this difficult time. Regarding this development, the NCLT, Mumbai bench in its judgement ordered initiation of Corporate Insolvency Resolution Process against Nitin Desai’s Company ND’s Art World Private Limited on July 25, 2023. In the order, the bench also appointed Jitender Kothari as the interim resolution professional to carry out the steps mentioned under the insolvency and Bankruptcy Code, 2016. ND Art’s Appeal against this NCLT admission order in the NCLAT Principal Bench, New Delhi was dismissed by its order on August 1, 2023.

“The loan of ₹150 crores availed in November 2016 and an additional Rs.35 crores was availed in February 2018 from ECL Finance. The account started default from January 2020. The total outstanding dues amounted to Rs.252 crores for which the NCLT was petitioned in July 2022. We are committed to fully cooperating with all the relevant authorities. Our commitment to transparency, cooperation, and adherence to the legal process remains steadfast,” the spokesperson added.