Nitin Desai defaulted on loan worth Rs. 252 crore; details
What's the story
Art director Nitin Desai reportedly died due to suicide at his Karjat studio. Now, a Hindustan Times report, quoting a Bharatiya Janata Party (BJP) leader said that he defaulted on a loan worth Rs. 252 crore.
Following the default, a Maharashtra bankruptcy court admitted an insolvency petition against his company.
The BJP leader had also reportedly asked the late art director to start afresh.
Starting afresh
BJP leader spoke to him a day before his death
Vinod Tawde, BJP's general secretary was a close friend of Desai.
"I had told him how Amitabh Bachchan had faced immense losses and come back to life again. We had told him that even if the studio was (suffering) due to loans, he could start afresh. It's very sad to hear about his death. I spoke to him the day before," Tawde told HT.
Details
Desai's company took a loan worth Rs. 185 crore
According to the report, the noted art director's company, ND's Art World Private Limited, had taken two loans amounting to Rs. 185 crore in 2016 and 2018 from a company called ECL Finance.
Troubles began when repayment of the loan took a hit in January 2020.
Meanwhile, the insolvency petition against Desai's company was admitted by the court last week.
The default
Desai's company was declared an NPA in March 2021
The creditors declared Desai's company's account as a non-performing asset (NPA) on March 31, 2021, with a total default of Rs. 252.48 (as on June 30, 2022).
Desai's company, in its response, said a fire incident on May 7, 2021, took place at the studio, causing property loss. It also alleged that the creditors issued a recovery notice on the day of the incident.
About his company
Creditor was to take over Desai's studio
Per local media reports, a few months ago, the financial creditor had approached authorities to seek possession of Desai's studio in Karjat, which lies in the Raigad district.
His company, ND's Art World was in the business of maintaining, organizing, and operating historical monuments' replicas while also providing services such as shopping malls, themed restaurants, and recreational centers.
About Desai
Everything to know about Desai
An eminent art director, Desai was also a production designer, producer, director, and actor. He was a four-time winner of the National Film Awards for Dr. Babasaheb Ambedkar, Hum Dil De Chuke Sanam, Lagaan, and Devdas.
Desai also produced the periodical TV drama titled Chittod Ki Rani Padmini Ka Johur, apart from directing Hello Jai Hind!, and Ajintha.
He was found dead on Wednesday.