August 7th 2023.
The Edelweiss Group has once again defended itself from the criticism that has arisen in the wake of the Nitin Desai suicide case. The group has maintained that it is not just a right but an obligation of creditors to pursue loan recovery efforts from defaulters.
The Chairman and Managing Director of the group, Rashesh Shah, has been named in the First Information Report (FIR) in connection with the art director’s suicide. However, Edelweiss Financial Services has claimed that it has not put any undue pressure on Desai.
Desai’s company had defaulted on a debt of Rs252 crore and had failed to secure any relief from the bankruptcy courts against insolvency proceedings. His body was found at his studio in Karjat last week.
The Edelweiss statement clarified that the group companies, ECL Finance, which had extended the loans, and Edelweiss Asset Reconstruction Company, which had taken over the loan for resolution, had acted in accordance with the law and RBI regulations. The statement further stated that the interest rate charged by ECL Finance was in line with the prevailing market rates.
The Group also clarified that it had loaned Rs185 crore to ND’s Art World Pvt Ltd in 2016 and 2018 for capital expenditure for the theme park, repayment of existing debt, general corporate purposes and working capital needs.
The Edelweiss Group has reiterated that it did not act outside the legal framework and is deeply saddened by the events. It has also committed to fully cooperate with the investigating authorities. The group has expressed hope that the investigation process will help everyone find closure on this tragic event.
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