FIR: Edelweiss intimidated Nitin Desai vide EOW, NCLT, DRT; tried to grab his studio

The Raigad Police FIR in the Nitin Chandrakant Desai suicide case has accused the Edelweiss ARC officials of intimidating the ace art director with threats of Section 138 (cheque bouncing), EOW, NCLT and DRT and attempting to ‘grab’ his sprawling N.D. Art World Pvt. Ltd. studio in Khalapur.

Based on a complaint by Desai’s widow, Neha C. Desai, the FIR has named Edelweiss ARC Managing Director and CEO R. K. Bansal, non-executive Director Rashesh Shah, Smit Shah, Keyur Mehta (both of a subsidiary) and Jitendra Kothari (Interim Resolution Professional).

Citing a recording left behind by her husband for his lawyer Vrunda Vichare, Desai had narrated how there were 2-3 investors ready to invest in the studio, but the Edelweiss and its honchos demanded ‘double-triple the dues’ and pressurised him in different ways.

“Smit Shah, Keyur and Bansal have looted my studio for their selfish motives… they didn’t accept my proposals… they tried to trap me,” said a desperate Desai in the recordings cited in the FIR.

“Ya lokaani majhi vaat lavli aahe...”(These people have destroyed me)", were Desai’s words, adding that “these monsters threatened, pressurised” him, forced him to sell off his prime office, and conspired to finish him off, as per the FIR.

The FIR adds that the studio was set up in 2004 at Khalapur, Raigad, and soon became a popular shooting venue for films, teleserials, and his fame grew.

Around 2016, the ECL’s Rashesh Shah came with an investment proposal, sweet-talked and lured him with big dreams for the developing the studio, and accordingly, Desai got two loans -- Rs 150 crore in November 2016 and Rs 35 crore in February 2018 -- against mortgaging the property.

Neha Desai said that though he was paying his EMIs regularly, in April 2019, the Edelweiss officials suddenly put immense pressure on him to pay up to six months’ advance EMI from May-October 2019.

Desai sold off his prime office in Powai’s Hiranandani Complex and met the lender’s demands, and later continued to pay up the EMI’s regularly till February 2020.

Then came the Covid-19 pandemic lockdown series, work at the studio had completely halted and Desai was delayed in repaying his loans/EMIs’.

“Yet, my husband expressed readiness to make a One Time Settlement and clear the Edelweiss loans, but the company officers didn’t respond and instead sent a legal notice threatening action,” said Neha in the complaint.

He and the family even attempted to rope in outside investors but Edelweiss officials didn’t allow the investors to even step in the studio, “and it appeared that they wanted to usurp our property”, putting great stress on Desai, said Neha.

Desai pleaded for a restructuring of the loan or a One Time Settlement but they remained aloof and without informing them, they made a loan cheque ‘bounce’ case and slapped him with a notice under the relevant laws.

The Desai couple rushed to meet Mehta, Smit Shah at their Kalina, Santacruz east office, but they merely kept giving assurances, and frantic calls to Rashesh Shah also resulted in vague responses, Neha said.

“Owing to the distress, Nitin Desai had become withdrawn, didn’t speak to the family members, remained irritable, and once when he and I were alone, he cried and said it was impossible to live now, he had suffered over Rs 100-crore in losses,” said Neha.

After more incidents, finally, on July 25, 2023, the NCLT initiated insolvency resolution proceedings against Desai and his company, and later Adv. Vichare and studio staffers informed her that the NCLT’s Kothari would reach the studio with bouncers to take control of the property on July 29.

Desai said in his recordings that rather than acting as an NCLT Administrator in the matter, "Kothari appeared to be working under pressure from the Edelweiss", and they wanted to take over the studio and exploit it for commercial purposes.

The sad story ended when the acclaimed Art Director ended his life in one of his beloved studios on the morning of August 2, stunning the entertainment and political worlds.