Mumbai, Aug 3 (IANS): The suicide of veteran art director Nitin Chandrakant Desai figured prominently in the Maharashtra Legislature on Thursday with Deputy Chief Minister Devendra Fadnavis announcing that a probe would be conducted into the incident.

Several legislators raised the issue of Desai’s death – attributed to financial distress – and the need to bail out his crisis-hit N. D. Art Works Pvt. Ltd. studio complex in Khalapur, Raigad.

"There is an urgent need to investigate questionable money-lending practices… Allegations are pointed at Rashesh Shah and his company. We demand that a special team should be constituted to thoroughly probe the methods of charging interest and the recovery of the loans," BJP's Mumbai chief Ashish Shelar said.

Congress leader and former CM Ashok Chavan called upon the government to take over Desai’s studio and safeguard the interests of all concerned, and other members sought a SIT to investigate the matter in depth.

"The government should not auction the studio but acquire it as a fitting tribute to his achievements, hard work and penance which created his unique place in the film industry. It's reported that he recorded some audio clips before his death in which some people are pursuing him in a threatening manner to recover his debts. The government must clarify the truth in the matter," Chavan said.

BJP MLC Prasad Lad said that the audio tapes of the purported 'suicide message' must also be probed in which Desai had mentioned that he stopped getting work due to a dispute with a Hindi film actor, and other things.

Responding, Fadnavis – who is also Home Minister – assured that a probe would be initiated into the circumstances leading to Desai’s suicide.

"The role of a private lending firm from where Desai had taken the loans shall be investigated to find out whether he was being charged high interest and if he was under any stress," he said.

As far as the fate of the 52-acre studio was concerned, he said the government will examine the legal aspects whether it can be preserved or taken over by the state government.

Desai had borrowed Rs.181 crore between 2016-2018 from ECL Finance Ltd, promoted by the Edelweiss Group, and the repayment troubles started around end-2019, and got complicated the next year owing to various reasons, including the Covid-19 pandemic lockdowns, which played havoc with the entertainment industry.

The loan amounts plus interest and other dues mounted to over Rs 250 crore in the next three years and last month (July), the National Company Law Tribunal (NCLT) admitted a plea by the Edelweiss Asset Reconstruction Company to launch corporate insolvency resolution process against Desai and his company.

Barely a week later, on August 2 morning, Desai’s body was found hanging in one of the sets at his studio in Raigad, creating a sensation in Bollywood and political circles. According to a close family friend, Desai’s funeral shall be held near a helipad in his studio on Friday afternoon after his son and two daughters reach India from the US.