INR 252 Crore Loan On Nitin Desai's Art World Studio Led To His Suicide?

Nitin ran a company called ND’s Art World Pvt Ltd. In January 2020 he started facing a financial crisis.

INR 252 Crore Loan On Nitin Desai's Art World Studio Led To His Suicide?

On August 2, noted Art Director Nitin Chandrakant Desai was found dead at his studio near Karjat. If reports are to be believed, he had taken a loan of INR 252 crore. Desai had trouble paying back the loan, and last week a bankruptcy court had admitted an insolvency petition against his company.

BJP general secretary Vinod Tawde was a close aide of Nitin. He said he used to counsel him and had suggested going for a new start. "We had told him that even if the studio was attached due to loans, he could start afresh. It's very sad to hear about his death. I spoke to him day before," Tawade told while speaking to HT.

Nitin ran a company called ND’s Art World Pvt Ltd. In 2016 and 2018, he had taken INR 185 crore through two loans from ECL Finance. In January 2020 he started facing a financial crisis.

On the morning of August 2, his body was found at his studio and police suspect that it is a suicide case.

Nitin was well-known for his work in Lagaan and Devdas movies. He built a noteworthy studio where films like Jodha Akbar had been shot, in the Khalapur taluka outside of Mumbai.

His company, ND's Art World, also organizes, maintains, and runs replicas of historical sites in addition to offering amenities and services related to hotels, theme eateries, shopping complexes, and recreation facilities.

The National Company Law Tribunal's Mumbai bench granted a petition submitted by Edelweiss Asset Reconstruction Company on July 25 to start a corporate insolvency resolution process.

After hearing out both sides the tribunal's Member (judicial) HV Subba Rao and member (technical) Anu Jagmohan Singh appointed Jitendra Kothari as resolution professional. The order stated that the management of ND’s Art World is required to be with Kothari during the whole process.

The insolvency professional typically oversees day-to-day business operations in addition to making sure that all creditors receive their dues through the sale of securities.

According to the order, the account was labeled a non-performing asset (NPA) by the creditors on March 31, 2021, and as of June 30, 2022, the total default amount was INR 252.48 crore.

Nitin Desai's company claimed in its response submitted prior to the order that a fire at the studio on May 7, 2021, caused property loss and that it was the creditors' fault that a notice of recovery had been sent that day.

According to reports, a few months back the financial creditor had approached district authorities in Raigad to claim the possession of ND's Art World Studio.

The petition against corporate debtor ND's Art World Private Limited was initially brought by financial creditor CFM Asset Reconstruction Private Limited for an unpaid debt of INR 252.48 crore, according to the NCLT judgment. But in 2020, M/s Edelweiss Asset Reconstruction Company Limited received the debt assignment.

The Defaults:

  • The ND's Art World failed to make the two loans' interest payments on January 31, 2020, totaling INR 4.17 crore.
  • The account was deemed a non-performing asset (NPA) on March 31, 2021, since the business was in default on the whole amount owed.
  • The business missed the payment of the second loan, totaling INR 33.24 crore, on March 31, 2022.
  • The company missed its whole main payment of the first loan, totaling INR 147.37 crore, on May 9, 2022.
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