Nitin Desai death: Edelweiss ARC says 'followed legal process'

As it conducted the investigations, the Khalapur police station registered a FIR against five officials of ECL Finance Company/Edelweiss Group on August 04.

A day after the Raigad police lodged an FIR against five officials of the Edelweiss Group for abetment to suicide in connection with the death of leading art director and production designer Nitin Desai, the company said on Saturday that it followed all legal processes as mandated by Reserve Bank of India (RBI) and has not acted in any manner outside of the legal framework.

The body of Desai (58) was found hanging in one of the facilities of the ND Studio at Khalapur in Raigad district on Wednesday.

It may be recalled that questions have been raised on the role of Edelweiss Asset Reconstruction Company and the issue had even figured during the just-concluded monsoon session of the Maharashtra Legislature.

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As it conducted the investigations, the Khalapur police station registered a FIR against five officials of ECL Finance Company/Edelweiss Group on Friday.

“Edelweiss ARC followed all legal processes as mandated by RBI and has not acted in any manner outside of the legal framework,” Edelweiss ARC said in a press statement on Saturday.

“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 statement reads.

"In order to clarify some misgivings, we would like to state that 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,” the statement pointed out.

“Edelweiss ARC is deeply saddened by the demise of Desai under tragic circumstances. We respect the need for the authorities to inquire into such tragic events and will cooperate fully with the enquiry process. We are confident that they will also conclude that we have acted lawfully,” the statement added.