The Chairman of Edelweiss Financial Services, Rashesh Shah, and the MD and CEO of Edelweiss Asset Reconstruction Company Limited, Raj Kumar Bansal, have moved the Bombay High Court seeking the quashing of the FIR filed against them in connection with the alleged abetment of art director Nitin Desai's suicide. Additionally, they have requested interim relief to halt any coercive actions and stay the investigation pending the hearing of their plea.
Art director Nitin Desai, known for his work on renowned Bollywood films, was found dead in his studio on August 2. An audio note left behind by Desai purportedly accused Bansal, Shah, and three others of contributing to his financial distress. Consequently, his wife lodged a complaint with the Raigad police, leading to the registration of an FIR against the five individuals under IPC sections 306 (abetment to suicide) and 34 (common intention).
The controversy revolves around loans provided by ECL Finance, a non-banking finance arm of the Edelweiss Group, to Desai's firm ND's Art World between 2016 and 2018. Desai's insolvency woes escalated, leading to the initiation of insolvency proceedings by the Mumbai bench of the National Company Law Tribunal.
Shah and Bansal's pleas assert that their actions were aligned with official and legal recovery procedures, denying any abetment to suicide. Senior Advocate Amit Desai, representing them, requested an urgent hearing before the bench led by Justice Nitin W Sambre. However, due to the unavailability of the Sambre-led bench, the pleas are expected to be mentioned before an alternate bench.
In response to the FIR, Edelweiss clarified that the loans extended to ND's Art World were for capital expenditure purposes, including a theme park and repayment of existing debt, along with general corporate purposes and working capital needs. The company emphasized that the loans were granted at prevailing market rates. It further noted that despite the financial difficulties encountered by NDAWPL, it continued with legal actions initiated earlier, and the firm was eventually admitted under the Insolvency and Bankruptcy Code by NCLT Mumbai on July 25.
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