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.
Comments
Mr.Bajarangi,Mr.Modi declared 80%of cow vigilantes as hooligans.Hope you know his address so that you can go to his home if you have damm.
It is sad to read some of the above comments. There should not be such low level comments.
Every Hindus are not fake gow rakshakas and every muslims are not cow smugglers.
I request all brothers of DK and Udupi to respect each other and we should live peacefully in our beautiful land.
These cow protectors do not have ba**s.....
@kiran bajarangi nikh popunda maga
Kiran Bajrangi ..... I know that is your DNA... Not a surprise ... Barking dogs do not bite .... There is no need of my address,, Give your address I will come to your home, to make your job easy....
@ kiran bajarangii
u people are good for these type of work only,
naam patha dehta tho thu ayenga kya .. u wil come wen liquer enter ur stomach... dar pok thuu be
We can feel the frustration in Kiran bajarangi's comments. Calm Down Bajarangi. Before you attack Slaughter house please make sure that no one from your group work their as a KASAI.
Kiran Bajrangi,
Gidad ki jab maut aati hai to wo sheher ki taraf baghta hai. Bajrangi Kasai khane ki taraf.
All these self styled gau rakshaks are un employed, uncultured goons
And they always attack one person in a group of 30-50 people... bcos they actually dont have guts to attack in small numbers for fear of their life ...
Congress is in power. Yet they can't take action against cow terrors.??? They are only limited to issuing press release and petitions, then who is controlling the govt.administrations??? CongRSS or BJP..??
Kya hum bewakoof hain..??
Mr.SK pura naam patha bejo darr pok, will come to your home and beat u.
@ Kiran Bajarani Bhaijan,
What a JOKE. We would like to see you in Slaughter House. Sharan Pumpwel please bring your Ambulance not the ARMY to protect your Bajarangis. All the Best. Abb ayega real Maza
abey saaley me dikatha hoon kithna dum he bolke samne ake dekho kuthe.
Kiran Bajrangi......Pls go ahead ....all the BEST.....let us see, who is your real MATHA....
KIran thumare gaand me dum hai tho slaughter house ko attack karkre dikana. Your 10 people attack a single person.
thanks for the information ivan, Next time we will directly attack slaughter houses.
Ivan at his best, agree this is what happening in india,
mainly this bajrangis are eating 90% of beef in india,
all beef business contact should be given to bajrangdal, then they will be happy.
yahh rightly said MLA saab 'Cows ‘rescued’ by vigilantes in coastal Karnataka end up in slaughterhouses'
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