Star-studded Habba' mesmerises Puttur

Bengaluru, Feb 29: A Lingayat seer on Friday threatened to get 10 BJP MLAs to quit if Karnataka Chief Minister BS Yediyurappa does not make MLA Dattatreya Patil Revoor a minister soon.

"If Yediyurappa does not make BJP's Gulbarga South MLA Dattatreya Patil Revoor a minister, I will get 10 ruling party legislators resign and reduce the government to a minority, forcing the Chief Minister to resign," said Srishaila Saranga mutt seer Deshikendra Swami at a meeting in Kalaburagi on Friday.

Addressing a gathering of the Lingayat community, to which Revoor belongs, the seer said although he wanted Yediyurappa to complete the remaining 3-year term in office and the BJP to return to power after the next elections, it would be difficult for Yediyurappa to continue if Revoor is not made a minister.

"Yediyurappa will be in office for the next three years if he makes Revoor minister. If not, I will ask him (latter) also to resign, as does not need to be in politics anymore because he has a house, many acres of agricultural land and is very rich," the seer told the gathering in Kannada.

In his nomination to contest in the May 2018 assembly elections, Revoor (37) declared in an affidavit Rs 17-crore assets, including immovable properties.

Wishing Yediyurappa to remain in office for the next three years and return as Chief Minister, the seer said if Yediyurappa is forced to quit, then the Lingayat community would not get an opportunity to have its leader as Chief Minister again for at least 30 years.

Yediyurappa, whose constituency is Shikaripura in Shivamogga district, is considered the tallest Lingayat leader of the politically powerful community, which accounts for 18% of the 6.5-crore state's population.

Though a dozen BJP legislators won from the erstwhile Hyderabad-Karnataka region in the May 2018 Assembly elections, only Prabhu Chauhan from the adjacent Bidar district was made minister for animal husbandry.

The Saranga mutt seer’s threat comes a month after Veerashaiva Lingayat Panchamasali seer Swami Vachananda, dared Yediyurappa to make 3 of the community legislators ministers ahead of the second cabinet expansion on February 6.

At a Lingayat gathering in the state's Davengere district on January 15, Vachananda told Yediyurappa to make party's Bilgi legislator Murgesh Nirani Minister, failing which the community would withdraw its support to the ruling party.

Hiryur is about 300km northwest of the southern state's capital Bengaluru.

Ticking off the young seer, a defiant Yediyurappa, however, threatened to walk out of the meeting if he was blackmailed for making Lingayat MLAs ministers.

"You cannot threaten me saying your sub-sect (Veera Shaiva) community would not support the BJP in the next assembly or Lok Saba elections, due in 2023 and 2024," retorted Yediyurappa, reasserting his status as the community's strongman in the state.

In the second cabinet expansion, only 10 newly elected legislators who defected from the Congress and the Janata Dal-Secular (JD-S) were made ministers, leaving 6 posts vacant in the 34-member ministry.

In the first cabinet expansion on August 20, 2019, 17 party legislators were made ministers. Nirani and others, who were present on the dais, pacified Yediyurappa to take his seat and requested the seer to avoid making political speech on such occasions.

"The chief minister threatened to resign than succumb to pressures from religious or community followers," a party official told media.

Feb 19: Bavaguthu Raghuram Shetty was once a typical billionaire with a taste for the high-life.

He splurged on a private jet, vintage cars and two entire floors of the Burj Khalifa, the world’s tallest skyscraper. His website shows him hobnobbing with politicians, Bill Gates and Bollywood royalty.

“The thrill of speed and freedom makes me love cars,” Shetty, 77, told local reporters last year.

Shetty had more than enough money -- at least on paper -- to afford such a lifestyle from companies he helped found, including hospital operator NMC Health Plc and financial services firm Finablr Plc. On Dec. 10, his stakes in the public companies were valued at $2.4 billion, making up the bulk of a fortune spanning education, hospitality and one of the world’s oldest tea companies.

Then, a week later, Carson Block came along.

Block’s investment firm, Muddy Waters, issued a report criticizing NMC’s accounts and disclosing a short position. Since then, Muddy Waters’s scrutiny has snowballed into a troubling scenario for Shetty that sheds light on his complex share arrangements and casts doubts about his net worth. His holdings in Finablr and NMC are worth $885 million, but Shetty’s fortune may now be just a fraction of that, depending on the size of his borrowings.

Filings this month show that Shetty pledged a quarter of his NMC stake against loans with First Abu Dhabi Bank and Zurich-based Falcon Private Bank. Two other shareholders may own half of his reported stake. Another lender -- Al Salam Bank Bahrain -- has already sold some of those shares to enforce security over a loan for Shetty, and NMC said Tuesday that First Abu Dhabi Bank sold another chunk earlier this month.

The situation “seems to have gone beyond some of the issues that Muddy Waters focused on initially,“ said Gavin Launder, a fund manager at Legal & General Investment Management, who owned shares in NMC until October. “The increased scrutiny has unearthed other issues.”

Law firm Herbert Smith Freehills has launched a review of Shetty’s holdings at his request, a spokesperson for the Indian-born businessman said, declining to comment further until the analysis is completed. Shetty resigned Sunday as NMC’s chairman.

In its Dec. 17 report on NMC, Muddy Waters hinted at potential overpayment for assets, inflated cash balances and understated debt. Shares of the United Arab Emirates’ biggest private health-care provider have since plunged 67%, and the firm is now the focus of takeover speculation. The sell-off also spread to Finablr, whose stock has tumbled 64% in that span.

NMC has disputed Muddy Waters’s claims, and the company hired former FBI Director Louis Freeh to conduct an independent review of the short seller’s allegations. Meanwhile, local regulators “are making inquiries with the relevant parties,” a spokesperson for the U.K.’s Financial Conduct Authority said.

Shetty is hardly the only ultra-wealthy person to leverage his assets. Elon Musk has used his shares in Tesla Inc. to obtain personal loans, while Oracle Corp. Chairman Larry Ellison has put up millions of the company’s shares to fund a lavish lifestyle that includes trophy properties, America’s Cup teams and the Indian Wells tennis facility in California.

But such deals can also sour, as demonstrated by Shetty’s lenders selling shares his investment firm pledged. He and his advisers are investigating details of the sales as part of their legal review, according to filings.

To complicate matters, Shetty pledged another batch of NMC stock in 2018 as part of a so-called equity collar arrangement with Goldman Sachs Group Inc. that uses options to limit the impact from share moves. Last month, he also pledged most of his stake in Finablr to refinance a loan from the company’s takeover of foreign-exchange firm Travelex for about $1.2 billion.

BRS Ventures Investment, the UAE-based holding company for most of Shetty’s assets, doesn’t report consolidated financials, preventing a complete analysis of his net worth. His other assets include a catering company, a waste-management firm and pharmaceutical business Neopharma, which four months ago was in the early stages of planning for an initial public offering.

Block, 43, earned his reputation as a short seller a decade ago through targeting U.S.-listed Chinese companies that he claimed were frauds. More recently, his San Francisco-based firm focused on British litigation-finance firm Burford Capital Ltd. and Japanese biotech stock PeptiDream Inc. Short sellers seek to benefit from a decline in a company’s share price.

Shetty founded NMC in 1975 after moving to Abu Dhabi from his native India. He created Finablr two years ago to consolidate his financial brands before listing it on the London Stock Exchange in 2019.

Block said he didn’t anticipate NMC’s shareholding drama.

“I wouldn’t have been able to predict that we’d get these bizarre disclosures about unclear share ownership coming out of the company,” he said in a Feb. 13 phone interview. “This has been obviously a more dramatic unraveling than we usually see.”