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.
Palaraj, a resident of Kunduru colony, said it was true that he had killed a cow for food. “But, is it right on the part of Bajrang Dal members to beat us black and blue. Is their act justified,” he sought to know.
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Modi govt has failed miserably in protecting minorities rights in the country..
Yours is one of the worst sites I have come across - disabling both Control+v and Control+c etc. Shame on you.
There is a Karnataka Prevention of Cow Slaughter and Cattle Preservation Act, 1964 in force in Karnataka, Section 4 of which lays down: \4. Prohibition of Slaughter of Cow or Calf of She-buffalo:- Not withstanding any law, usage or custom to the contrary, no person shall slaughter or cause to be slaughtered, or offer or cause to be offered for slaughter or otherwise intentionally kill or offer or cause to be offered for killing any cow or calf of she-buffalo.\" The law is framed by Congress government four decades back and is very much in force. As such, what the dalits did was illegal - a crime - for which they are liable to 6 months imprisonment or fine or both. Well, that does not give license to vigilantes of any party or organization to take law into their own hands and beat them up either. The only course was to stop the killing if possible, or seize the slaughtered cow (carcass) etc. and hand over to the police. If the police do not act, then they could agitate in public, etc. So both parties are wrong on this occasion."
NRI PM S ACCHE DIN FOR INDIANS
The day Mr. Narendra Modi became prime minister , all such goondasm raised in our country. Narendra Modi can't talk because these are the part of his mentor (RSS) programmes.
These goons (Bhajrangis) are paid goons of BJP.
Time has come for Daliths and Minorities to stand against these criminals.
This is Karnataka not Gujurat. Strict punishment should be handed out to the perpetrators of such a heinous crime. As per the Constitution people are free to eat what they please. Why should the Bajrang Dal or anyone get offended if anybody eats beef.
BD will get their reward from the devils who inspire them to do such acts... Devils are permanent residence in HELL... it is easy for them to take human to HELL when people encourage EvIL in the society... Evil in the society spreads when People dont Ponder or want to know about the CREATOR of all that exists...
ISLAM says no one will escape of their crime, A day will be there to JUDGE all that happened in this EARTH. and JUSTICE will be done by the CREATOR who created U me and all that exists.
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