Art Director Nitin Desai Owed ₹252 Crore In Defaulted Loans

Renowned art director Nitin Chandrakant Desai was discovered dead at his studio in Maharashtra's Raigad district.

Alongside his illustrious career, Desai faced financial struggles, including a default on a ₹252-crore loan, leading to an insolvency petition being filed against his company.

The news of his demise has sent shockwaves through the industry, leaving many to reflect on the challenges faced by artists in the demanding world of cinema.

Nitin Desai's name was synonymous with visual grandeour in Bollywood, having contributed his talent to iconic films like Lagaan and Jodhaa Akbar.

However, behind the scenes, his company, ND's Art World Pvt Ltd, was grappling with financial woes, which escalated when they borrowed ₹185 crore from ECL Finance in 2016 and 2018.

Troubles with loan repayments began to surface in early 2020, marking the start of a challenging journey for Desai and his company.

BJP GENERAL SECRETARY VINOD TAWDE SAID THIS ABOUT HIM

In a conversation with a reputed news portal, a close friend of the late art director, BJP General Secretary Vinod Tawde, recalled having counselled Desai during his tough times. He cited examples of other renowned figures, like Amitabh Bachchan, who bounced back from adversity, encouraging Desai to look at the future with hope. However, the tragic news of Desai's passing has left many in shock and grief.

NITIN DESAI'S FINANCIAL PRESSURE

ND's Art World Pvt Ltd specialized in organizing, maintaining, and operating replicas of historical monuments, offering facilities and services related to hotels, theme restaurants, shopping malls, and recreation centres. Despite the company's unique offerings, it faced mounting financial pressure.

The situation took a legal turn when Edelweiss Asset Reconstruction Company filed a petition with the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate a corporate insolvency resolution process. On July 25, the NCLT admitted the petition and appointed Jitender Kothari as the interim resolution professional to oversee the process.

According to the NCLT's order, the company's account had been classified as a non-performing asset (NPA) by creditors on March 31, 2021. The total default amount reached a staggering ₹252.48 crore as of June 30, 2022. In response, Desai's company attributed the financial distress to a fire incident at the studio on May 7, 2021, resulting in property loss, and criticized creditors for issuing a recovery notice on the same day.