Nitin Desai's passing casts a shadow on ND Studio's financial woes; defaulted on Rs. 252 crore loan

Celebrated art director Nitin Chandrakant Desai's sudden demise has left the film industry and his friends in a state of shock and grief. Nitin, known for his exceptional talent and grand sets, was found dead at his studio in Maharashtra's Raigad district. However, behind the scenes, financial troubles seemed to have plagued his company, ND's Art World Pvt Ltd.

Records show that Nitin's company had taken loans amounting to ₹185 crore from ECL Finance in 2016 and 2018. Unfortunately, starting from January 2020, the company faced difficulties in repaying these loans, leading to default on the ₹252-crore loan to the financial creditor. The situation escalated, and last week, a bankruptcy court admitted an insolvency petition against ND's Art World Pvt Ltd.

Despite facing financial hardships, Nitin's close friend, BJP general secretary Vinod Tawde, revealed that they had often counselled him, encouraging him to stay strong and rise above adversities. He had shared inspiring examples of how even stalwarts like Amitabh Bachchan had faced immense losses and bounced back. Vinod expressed deep sadness upon hearing about Nitin's death, having spoken to him just the day before.

ND's Art World Pvt Ltd was engaged in various ventures, including the organization and maintenance of replicas of historical monuments, as well as providing services related to hotels, theme restaurants, shopping malls, and recreation centers. The recent order by 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.

The insolvency professional appointed, Jitender Kothari, will be responsible for ensuring that all creditors receive their dues as per the amounts realized from selling the securities, while also managing day-to-day business operations.

According to reports, the company had classified the account as a non-performing asset (NPA) by the creditors on March 31, 2021. The total default amount stood at ₹252.48 crore as of June 30, 2022. The company attributed some of its financial woes to a fire incident at the studio on May 7, 2021, which resulted in the loss of property. However, creditors had sent a recovery notice on the same day, adding to the complexities.

The financial creditor had previously approached district authorities in Raigad to take possession of ND Studio. The circumstances surrounding Nitin's death have brought his company's financial challenges to the forefront, raising concerns about the financial health of the film industry and the need for support during tough times.