Police Notice To ECL Finance Executive In Art Director Death Case

A finance executive of ECL Finance has been served notice by the police seeking information about loans given to Bollywood art director Nitin Desai, who died by suicide on Wednesday.

The police at Khalapur in Maharashtra's Raigad district, in the notice, told the executive to come to the police station on Tuesday.

Mr Desai's company, ND's Art World Pvt Ltd, had borrowed Rs 185 crore through two loans from ECL Finance - promoted by Edelweiss Group - in 2016 and 2018, and troubles with repayments started from January 2020.

The police said they are gathering more details about the loans from the lawyer, financial adviser and account of ND Art World. So far 15 witnesses have been questioned, and their statements have been recorded.

His company had defaulted on a Rs 252 crore loan repayment to creditors, and the Mumbai bench of the National Company Law Tribunal (NCLT) had started insolvency proceedings.

Mr Desai's wife, Neha, in the first information report (FIR) alleged the officers of the company were responsible for causing severe mental stress to her husband. She alleged the employees of the creditor firm harassed her husband over loans, which led to his death by suicide.

Mr Desai worked for Bollywood films such as Lagaan and Jodhaa Akbar.

ECL Finance is a non-banking finance arm of Edelweiss Group.

Edelweiss Asset Reconstruction Company Ltd in a statement on Friday said it is "deeply saddened by the demise of Shri Nitin Desai under tragic circumstances."

"... Nitin Desai's company was extended financial assistance in 2016 and 2018 for setting up theme park and working capital. The company encountered financial difficulties since 2020 and various attempts to improve the financial situation of the company did not bear fruit. The company was eventually referred to NCLT in 2022 and admitted in NCLT in July 2023," Edelweiss ARC said.

"Edelweiss ARC 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. We followed our own detailed procedures through established legal channels at great expense and time to us..." the company said.