Insolvent Nitin Desai missed payments on loans totaling Rs 250 billion

Nitin Chandrakant Desai, a renowned Bollywood art director, was in deep financial trouble with debts totaling more than Rs 250 crore with bankruptcy procedures having only been filed against him last week. He was discovered hanging in a case of suspected suicide this morning.

Desai’s ‘ND Art World Pvt Ltd’, which was spread over 52 acres in Uran (Raigad), was owned by an independent MLA named Mahesh Baldi, who told reporters that the creative genius had been struggling financially for the previous four to five years, which may have been the cause of his suicide.

 

According to a petition submitted by the creditors CFM Asset Reconstruction Pvt. Ltd for debts totaling just over Rs 250 crore, the National Company Law Tribunal (NCLT) in Mumbai had ordered starting the Corporate Insolvency Resolution Process (CIRP) against Desai’s company and appointed Jitender Kothari as an Interim Resolution professional.

 

Desai, his wife Naina, and their company obtained a loan from ECL Finance Ltd in 2016 for Rs 150 crore. In 2018, they added another Rs 31 crore, for a total of Rs 181 crore.

 

The financial issues had started in 2019, and due to a string of irregular or late principal payments, the loan came under review in March 2020. By March 2021, it was labeled a non-performing asset. The total sum still owed by June 2022 had reached an astounding Rs 252 crore, at which point bankruptcy procedures were started in late July.

 

Desai blamed the issues on the Covid-19 pandemic lockdowns, a lack of filming at the studio, and a significant fire on the property, but he was certain that they would pass quickly, despite the efforts of numerous of his political allies from different parties to raise his spirits.

 

After learning of Desai’s unexpected passing on Wednesday morning, the glamour and entertainment industries were shocked, and condolences flowed in from all directions. Governor Ramesh Bais, Chief Minister Eknath Shinde, Deputy CMs Devendra Fadnavis and Ajit Pawar, Congressman Nana Patole, President of the Nationalist Congress Party Sharad Pawar, several other politicians from other parties, prominent figures from Bollywood, and others are included.