24-yr-old Dr Muhammed Irshad from Yenepoya Medical College dies in Ladakh

Dubai, Jul 25: The founder of NMC Health, BR Shetty, has had a worldwide freezing order placed on his assets at the request of a lender that claims he has defaulted on a loan of more than $8 million (Dh29.4m).

The order was granted to Credit Europe Bank (Dubai) last month ahead of a claim filed at the DIFC Courts against Mr Shetty, New Medical Centre Trading and NMC Healthcare.

The lender said in its claim they “are jointly and severally liable” for the repayment of money initially secured through a credit agreement in December 2013 and renegotiated in December last year. Credit Europe Bank is an Amsterdam-headquartered institution specialising in trade and commodities finance with operations in nine countries.

The credit agreement was guaranteed by two security cheques which the bank said in its claim were signed by Mr Shetty – one drawn on his personal account and another on the account of New Medical Centre Trading – that have been "dishonoured upon presentation due to insufficient funds".

The bank claimed Mr Shetty “has now fled the jurisdiction of the UAE to India” and that there was a risk of his “substantial” assets in the Emirates being dissipated.

The assets frozen include properties in Abu Dhabi and Dubai, as well as shares in NMC Health, Finablr, BRS Investment Holdings and other companies. It allows for up to $7,000 per week to be spent on “ordinary living expenses and reasonable sum[s] on legal advice and representation”, a DIFC Courts document granting the freezing order shows.

Credit Europe Bank declined to comment when contacted by The National, stating it does not comment on ongoing litigation proceedings. Representatives for Mr Shetty and for NMC Healthcare, which is now being run by administrators Alvarez & Marsal, also declined to comment.

NMC Healthcare was founded by Mr Shetty in 1975 and grew from a single hospital into the UAE’s biggest privately-owned healthcare operator, which employed 2,000 doctors and 20,000 other staff. The company was listed on the London stock exchange and at its peak was valued at £8.58 billion (Dh40bn). However, its shares slumped after short seller Muddy Waters Research issued a report in December 2019 alleging the company had inflated its cash balances, overpaid for assets and understated its debts. This led to a string of damaging revelations by the company, including the fact that its debt was materially higher – at $6.6bn – than the $2.1bn on its balance sheet. NMC Healthcare was placed into administration in April by its biggest creditor, Abu Dhabi Commercial Bank, but its UAE businesses continue to trade as a going concern.

Mr Shetty said in a statement issued in April that he has been a victim of fraud committed by "a small group of current and former executives” at companies owned by him. He said bank accounts were created in his name and transactions were made without his knowledge, and that loans, cheques and bank transfers were also fraudulently guaranteed in his name using his forged signature.

In response to the claim filed by Credit Europe Bank (Dubai) at the DIFC Courts, Mr Shetty says he did not personally guarantee loans made to NMC Trading or NMC Healthcare and that the signatures used on cheques guaranteeing the loans are forgeries. His defence cites the opinion of “Dr Al Bah, an independent, experienced and qualified forensic document examiner”, that someone other than Mr Shetty signed the lending agreements and cheques.

An application by NMC Trading and NMC Healthcare to the DIFC Courts to have the claim against it heard in private for fear of triggering claims by other lenders – the group owes money to around 80 local, regional and international lenders – was dismissed, given that the appointment of administrators at the group and allegations of fraud at the company are already in the public domain.

Both companies have indicated to DIFC Courts that they intend to contest the claim against them.

Bengluru, Apr 20: Lockdown restrictions have been extended by a day by the Karnataka government, in an order issued by chief secretary TM Vijay Bhaskar on Sunday.

The order directed all heads of departments, district deputy commissioners and superintendent of policies to "continue to implement the measures presently in force" as per Ministry of Home Affairs guidelines dated April 14, "till the midnight of April 21, 2020."

The MHA guidelines had earlier allowed the state government to relax lockdown norms post-April 20.

Bengaluru, Jun 25: Karnataka Chief Minister BS Yediyurappa on Thursday asked people to cooperate by following the measures put in place for the control of COVID-19 if they don't want another lockdown or sealing in Bengaluru.

Amid talks about re-imposing lockdown in the city following the recent spike in cases, the Chief Minister said he will hold discussions on Thursday and Friday regarding the strict measures that need to be taken to control the virus.

"COVID pandemic is increasing, we are making all efforts and we have even sealed some areas. Today afternoon at Krishna (the CM's home office) I have called a meeting with Ministers and officials and will discuss the strict measures to be taken to control COVID," Mr Yediyurappa said.

Speaking to reporters, he said, "Tomorrow noon I have called a meeting of legislators of all political parties from Bengaluru and all Ministers from the city to discuss with them, seek their opinion and take stringent measures."

Citing an increase in cases, Health Minister B Sriramulu on Tuesday had said the government may have to think about imposing lockdown in the city if the situation continues.

Following this several Ministers in the state cabinet on Wednesday had said, any decision on re-imposing lockdown in the city will be taken only after consulting experts.

Some reports had even suggested that a decision on lockdown is likely at the cabinet meeting scheduled today.

The Chief Minister said there is no lockdown in the entire city, adding only in a few areas it has been imposed and would continue.

Concerned over the increase in COVID-19 cases in the city, Mr Yediyurappa on Monday had directed officials to implement lockdown measures strictly in certain clusters which have reported greater number of coronavirus infections.

The city's busy K R Market and Kalasipalya Market have been sealed for 15 days by the civic body Bruhat Bengaluru Mahanagara Palike (BBMP) as part of measures to check the spread of the deadly virus.

Stating that Bengaluru is a model for the whole country in COVID-19 management, Mr Yediyurappa on Thursday said, when you compare with other major cities, "we have not yet lost control."

A total of 1,678 cases of COVID-19 have been reported in the city till last evening.

This includes 78 deaths and 475 discharges.

The number of COVID-19 cases in the state which stood at 3,408 as of June 1 has crossed the 10,000 mark on Wednesday with the state capital topping the districts in the infection count.

Seeking public cooperation in controlling the spread of the virus, Yediyurappa said social distancing and other measures in place were not followed, there has been spread to slums and other places.

"If you don't want Bengaluru to be sealed once again please cooperate and maintain distance," he added.

Mr Yediyurappa also said, the government has taken all measures for the safe conduct of SSLC (class 10) exams from today, and students should come out and write exams for their bright future.