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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.

Bengaluru, Feb 14: Bengaluru Police on Friday said that it has busted a gang engaged in e-commerce fraud over the online marketplace who were involved in 200 of the 316 cheating cases registered last year.

"We registered 316 cases for cheating through online marketplaces last year. We have busted a gang operating from Rajasthan's Bharatpur and arrested 5 people. They are responsible for 200 out of 316 cases. We are questioning the accused," Bhaskar Rao, Commissioner of Police, Bengaluru told reporters here.

Explaining their modus operandi, the Police Commissioner said, "There were fictitious buyers and sellers on the online marketplace. These people used to call up prospective buyers and sellers. The products that were shown were two-wheelers, four-wheelers, electronic items and furniture."

"People used to send their money to these fraudsters using their QR code. The fraudsters were operating from Bharatpur in Rajasthan. A police team of 15 was sent to the place from where they were operating. Rajasthan police gave us full cooperation and we were able to arrest five persons," he added.

Rao said that these fraudsters had an idea about the loopholes in the e-commerce sector and exploited them.
"Some of those arrested were employed in the e-commerce and banking business and they had an idea about the loopholes in this sector," he said.

"We warn the citizens to ensure that they verify the antecedents of the buyers and sellers in this sector before spending money on these platforms," he added.

Mangaluru, May 15: In a shocking development, as many as 20 people from coastal Karnataka, who recently came from United Arab Emirates today tested positive for covid-19.

More than 175 repatriates were brought from Dubai to Mangaluru International Airport on May 12. Among them residents of Dakshina Kannada and Udupi districts were quarantined in their respective district. 

The throat swabs of all the passengers were sent for covid-19 testing on the following day. 21 of them obtained positive report today. Among those tested covid-19 positive, 15 are residents of Dakshina Kannada and five are from Udupi district. 

They were shifted to covid-19 hospitals in their respective districts today.