Rashesh Shah, the founder and Chairman of Edelweiss group a diversified financial services firms, which has interests across credit (retail and corporate), asset management, asset reconstruction, insurance, and wealth management among others will soon be investigated in connection with the alleged suicide or art director Nitin Desai.
Investigation on Nitin Desai suicide
Raigad police in Maharashtra, who are investigating the suicide, found 11 audio clips in a voice recorder found at Desai's office, an official said. In one of the voice notes found after his alleged suicide, the Bollywood art director criticised the financial services firm to which his company owed money. He also purportedly said that he had walked a long road and could not go any further.
The police are likely to call the officials of the financial services firm mentioned in the note for enquiry. This comes after Deputy Chief Minister of Maharashtra Devendra Fadnavis assured the state legislature that the roles of Rashesh Shah and his company would be probed in connection with suicide of the acclaimed art director.
Edelweiss to cooperate with authorities
The company on Thursday said it will cooperate with the authorities investigating the death of Desai. "We are committed to fully cooperating with all the relevant authorities. Our commitment to transparency, cooperation, and adherence to the legal process remains steadfast," it said in a statement.
Troubles of his own
Shah alumnus of IIM–Ahmedabad, who co-founded Edelweiss in 1996 built it into a $770 million group. The 59-year-old has already been facing difficulties since 2018, when a credit crisis resulted in a major drop in Edelweiss's stock. The company shares plunged 80 per cent since May 2018 resulting in the company selling majority stocks in its wealth management operation to Asia focused private equity firm PAG in 2020.
Shah in 2020 also had to appear before the Enforcement Directorate in connection with Foreign Exchange Management Act violation. The inquiry was in relation to his company's dealing with Capstone Forex Private Limited who was under the scanner for FEMA violations. He and his companies both denied relationships with Capstone and said that allegations were false.
Edelweiss Earnings
Edelweiss Financial services on Friday announced its earnings for the first quarter of this fiscal year. The company's net profit increased to Rs 77.75 crore from the earlier Rs 35.40 crore and its total income moved up from Rs 1,277.10 crore to 1,995.47 crore.
