Nitin Desai death: Edelweiss Finance employees appear before Raigad police

Earlier when the employees had presented themselves before the police, the police said that the documents submitted were incomplete and called for some more documents to be submitted on Friday. Sources said that the employees submitted the necessary documents and have been asked to submit some more documents in the coming days.

An officer said, “As per the summons issued to them to appear before us at 10 am today, the employees remained present along with the necessary documents. However we needed some more documents and asked them to get the same in the next few days.” The officer said that it would be too soon to say if there was any culpability on the part of the finance company in connection with the suicide of Desai.

The Raigad police have registered a case of abetment to suicide against five, including Edelweiss MD Rashesh Shah, based on the complaint filed by Desai’s wife. Edelweiss Finance or ECL had lent Rs 181 crore to Desai’s firm ND’s Art World between 2016 and 2018. Following the defaults, as on June 30, 2022, the total default amount stood at Rs 252.48 crore. A day before he allegedly died by suicide in his Raigad studio, Desai’s appeal against National Company Law Tribunal (NCLT) order allowing initiation of corporate insolvency and resolution process against his studio—ND’s Art World Private Ltd— was dismissed by National Company Law Appellate Tribunal (NCLAT). The NCLT order came on July25, 2023, while the NCLAT dismissed Desai’s appeal on August 1, paving the way for insolvency proceedings against his firm. Desai was found hanging in ND Studios, Karjat, on August 2.

Later, based on a statement given by his wife, police registered an FIR. In her complaint, Neha alleged that officers of Edelweiss were responsible for causing mental stress to her husband. She also said that employees of the creditor firm harassed her husband over loans. She even referred to an audio clip by Desai in which he made allegations against Edelweiss.

However, in a filing with the stock exchange , Edelweiss stated, “The interest rate charged by ECLFL was as per prevailing market rates; legal processes for recovery are elaborately established under RBI and IBC guidelines and were duly followed by Edelweiss Asset Reconstruction Company (EARC). At no time was there any undue pressure being put on the borrower for recovery…”