AAP to expand network in Saudi Arabia, other Gulf countries

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.

Madikeri, May 30: Environmentalists have opposed the Karnataka Forest Department and the Public Works Department’s move to erect concrete pillars and marking of trees to construct a proposed road from Patti to Todikana within the Talacauvery Wildlife Sanctuary near Talacauvery in Kodagu District.

They have urged for immediate stopping of road works in a protected area.

In a letter to Conservator of Forests, Mysuru Circle, T Heeralal and DCF (Territorial and In-charge Wildlife) S Prabhakaran, the Trustees of Wildlife First K M Chinnappa and A A Poovaiah have termed the road works illegal and violates Supreme Court order on National Parks and Wildlife Sanctuaries.

The letter’s copy has also been sent to Principal Chief Conservator of Forests (Head of Forest Force), and Kodagu Deputy Commissioner urging them to halt the progress of the road works. “Patti and Todikana are at the core of the Talacauvery Wildlife Sanctuary and such unilateral activities without complete approval on completion of the statutorily mandated procedure (both under Forest Conservation Act and Wild Life Protection Act),” the letter stated.

The letter added that they would be forced to move the Courts and the officers who have given approval to the project would face legal consequences.

Mangaluru/Udupi, June 28: The coastal districts of Dakshina Kannada and Udupi have recorded 97 and 40 fresh coronavirus positive cases in last 24 hours. 

With the highest single day spike, the total covid-19 positive cases in Dakshina Kannada mounted to 665, among which 272 cases are now active.

So far 313 people have recovered and discharged from the hospitals. 13 covid-19 patients have passed away. Two among them have died due to non covid reasons. 

With the 40 fresh cases, Udupi’s total mounted to 1179, among which only 135 cases are active. 1042 people have recovered and discharged from the hospitals. Two people passed away.