Late art director Nitin Desai defaulted on Rs 252 crore loan: Report

In a tragic incident that has sent shockwaves through the film industry, noted art director Nitin Chandrakant Desai was found dead at his studio in Raigad, Maharashtra. The 74-year-old artist had been facing financial woes, struggling to repay a staggering Rs 252-crore loan, leading to a bankruptcy court admitting an insolvency petition against his company, ND's Art World Pvt Ltd, according to a report by PTI.

Desai's financial troubles began in January 2020, and his company had reportedly borrowed Rs 185 crore through two loans from ECL Finance in 2016 and 2018. The sprawling ND Studio was one of his notable ventures in the Khalapur taluka on the outskirts of Mumbai.

ND's Art World Pvt Ltd was not just an art direction company but was also involved in organising, maintaining, and operating replicas of historical monuments, as well as providing facilities and services related to hotels, theme restaurants, shopping malls, and recreation centres.

On July 25, the Mumbai bench of the National Company Law Tribunal admitted a petition filed by Edelweiss Asset Reconstruction Company to initiate a corporate insolvency resolution process against Nitin Desai's company. The tribunal appointed Jitender Kothari as the interim resolution professional, with the responsibility of ensuring that creditors receive their dues by selling securities and overseeing the day-to-day business operations.

The creditors had reportedly classified the account as a non-performing asset (NPA) on March 31, 2021, and the total default amount reached Rs 252.48 crore as of June 30, 2022. In its reply, ND's Art World reportedly cited a fire at the studio on May 7, 2021, as the reason for property loss and expressed dissatisfaction with creditors for issuing a recovery notice on the same day.

Also Read: Nitin Desai death: Hansal Mehta recalls “scary time” when the cycle of debt led him to “very dark place”; expresses grief

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