Kerala: India's first Islamic bank gets RBI approval

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.

It has been 33 years since the night of 22 May, 1987 when nearly 50 Muslim men from Hashimpura, a settlement in Meerut were rounded up and packed into the rear of a truck of the Provincial Armed Constabulary (PAC), an armed police of Uttar Pradesh. It was the blessed month of Ramadan and all the Muslims were fasting.

That night 42 of those on board the truck were killed in two massacres in neighbouring Ghaziabad district. One along the Upper Ganga canal near Muradnagar, the other along the Hindon canal in Makanpur, on the border with Delhi.

The cops had returned home after dumping the dead bodies into the canal. A few days later, the dead bodies were found floating in the canal and a case of murder was registered. 

Vir Bahadur Singh was the chief minister of Uttar Pradesh and Rajiv Gandhi was the prime minister of India when this incident took place. 

Not much has changed for the survivors and the relatives of the victims even today. The wounds are still fresh. Hashimpura remains devoid of basic municipal amenities, the erring silence on the narrow lanes of the locality amid the activities of a daily life speaks of the horror of the fateful day in 1987.

The massacre was the result of one among the many outcomes of the decision taken by the Rajiv Gandhi government to open the locks of Babri Masjid. After a month of rioting, the situation was tense in various parts of Meerut, and a lot spilled over in the nearby areas.

Timeline

May 22, 1987

Nearly 50 Muslims picked up by the PAC personnel from Hashimpura village in Meerut, Uttar Pradesh.
Victims later shot and bodies thrown into a canal. 42 persons declared dead.

1988

UP government orders CB-CID probe in the case.

February 1994

CB-CID submits inquiry report indicting over 60 PAC and police personnel of all ranks.

May 20, 1996

Charge sheet filed against 19 accused before Chief Judicial Magistrate, Ghaziabad by CB-CID of Uttar Pradesh police. 161 people listed as witnesses.

September 2002

Case transferred to Delhi by the Supreme Court on a petition by the families of victims and survivors.

July 2006

Delhi court frames charges of murder, attempt to murder, tampering with evidence and conspiracy under the IPC against 17 accused.

March 8, 2013

Trial court dismisses Subramanian Swamy's plea seeking probe into the alleged role of P Chidambaram, then Minister of State for Home, in the matter.

January 22, 2015

Trial court reserves judgement.

March 21, 2015

Court acquits 16 surviving accused giving them benefit of doubt regarding their identity.

May 18, 2015

Trial court decision challenged in the Delhi HC by the victims' families and eyewitnesses who survived the incident.

May 29, 2015

HC issues notice to the 16 PAC personnel on Uttar Pradesh government's appeal against the trial court verdict.

December 2015

National Human Rights Commission is impleaded in the matter. NHRC also seeks further probe into the massacre.

February 17, 2016

HC tags Swamy's appeal with the other petitions in the matter.

September 6, 2018

Delhi HC reserves verdict in the case.

October 31, 2018

Delhi HC convicts 16 former PAC personnel for life after finding them guilty of the murder of 42 people.

Bengaluru, May 3: Karnataka Government has allowed the movement of migrant workers, pilgrims, tourists, students and other persons who are stranded and also those who want to go to their residence as a "one-time measure" from district to district, after obtaining "one-day, one way" passes issued by concerned authorities.

Consequent to the Ministry of Home Affairs (MHA) new guidelines on lockdown measures, the government of Karnataka issued new guidelines on lockdown measures which will come into effect from May 4 for the period of two weeks.

In an order issued on Saturday, Chief Secretary and Chairman, State Executive Committee, Karnataka State Disaster Management Authority stated, "In the exercise of the powers, conferred under the Disaster Management Act, 2005, the undersigned, in his capacity of Chairman, State Executive Committee, hereby order to permit movement migrant workers, pilgrims, tourists, students and other persons who are stranded and also those people who want to go to their residence as a one-time measure from district to district with one-time one-day one-way passes issued by concerned Deputy Commissioners of the districts/Deputy Commissioner of Police in Commissionerates for strict implementation."

The details of the passes issued shall be shared by the issuing Deputy Commissioners of the districts/ Deputy Commissioner of Police with the receiving Deputy Commissioners of the districts/Deputy Commissioners of Police shall follow the SOPs prescribed by the Ministry of Health and Family Welfare for the movement of such persons, the order read.

It is reiterated that this would be a one-time one-day one-way pass for the individuals to reach their final destination.

Meanwhile, three deaths and 12 new COVID-19 cases were reported in the 24 hours in Karnataka, said the state Health Department on Saturday.

According to the Health Department, the total number of coronavirus positive cases in the State is now 601. 271 patients have either been cured or discharged. The virus has killed 25 people so far in the State.