In a recent development, Edelweiss Financial Services has come forward to clarify that there was "no wrongdoing of any nature" associated with late Nitin Desai's loans.
The comment comes after Maharashtra Deputy Chief Minister Devendra Fadnavis announced that the police were investigating Rashesh Shah and ARC Edelweiss in connection with renowned art director Nitin Desai's suicide case.
Nitin Desai was the promoter of company ND's Art World, which had availed loans amounting to Rs 150 crore in 2016 and Rs 35 crore in 2018 from ECL Finance. However, ND's Art World, unfortunately, faced financial difficulties in 2019 and subsequently went into default.
As a result, the loans were assigned to CFM Asset Reconstruction Company, which took legal action against the company. In an auction process, Edelweiss ARC (EARC) acquired a portfolio of assets from CFM Asset Reconstruction Company.
Subsequently, EARC was admitted under the Insolvency and Bankruptcy Code by the National Company Law Tribunal (NCLT) Mumbai on July 25.
Following the NCLT's order, Nitin Desai appealed against the decision, seeking relief from the insolvency proceedings. However, his appeal was dismissed by the National Company Law Appellate Tribunal (NCLAT) on August 1.
Edelweiss Financial Services maintains that it followed the appropriate legal and regulatory procedures in handling the loans and asserts that there was no impropriety involved in the matter.
Four-time National Award winner Nitin Desai was found hanging at his studio in Maharashtra's Karjat on August 2. After his body was discovered, Maharashtra police recovered several audio recordings of Desai mentioning he was under stress due to a financial crisis and heavy loans.
Those audio recordings have also been sent to forensics, authorities said.
First Published: Aug 6, 2023 6:18 PM IST
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