According to the police, Desai and his wife Neha set up the studio in 2004, a year before it became functional, and he took charge of its operations. The couple initially applied for and repaid a loan of Rs 2.5 lakh, Neha had stated in the FIR.
Nitin Desai, who had defaulted on Rs 185 crore loans taken from a subsidiary of Edelweiss, was found dead at his ND Studio in Khalapur Raigad near Karjat on August 2.