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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, Mar 7: Karnataka Chief Minister BS Yediyurappa on Friday said that the Upper Krishna Project (UKP) will be completed within the next three years.

Speaking in the Assembly, the Chief Minister said: "After discussing with the officials of the finance department, we have decided to allocate Rs 10,000 crore funds for the third phase of UKP. This project will be completed within a span of three years."

Yediyurappa also said that the government will hold talks for additional funds from the Central government.

The leader of Opposition, Siddaramaiah, interrupted and said that the CM has announced this just to gain the confidence of MLAs from north Karnataka.

"The government could have announced it in the budget itself or else the Chief Minister could have announced it at the time of discussion on the budget. Where are the funds with the government to complete the project? CM has announced this just to gain the confidence of MLAs who hail from north Karnataka," said Siddaramaiah.

Deputy Chief Minister Govinda Karajol while speaking to the media welcomed the Chief Minister's statement and said that the earlier government didn't allocate a single penny in the last seven years he added.

Mangaluru, Jan 25: Orange vendor Harekala Hajabba, popularly known as 'Akshara Santha' (the saint of alphabets), who went on to build a school at Newpadpu village on the city’s outskirts in 1999 is among this year’s Padma Shri awardees.

When Hajabba received the call on being nominated for the award, he was standing in a queue to buy rations.

As he is not fluent in Hindi, Hajabba handed over the phone to an auto driver, who conveyed the news that the Padma Shri award will be conferred on him.

The unlettered achiever set up a primary school from his meagre savings of Rs 150 per day,  selling oranges in Mangaluru. 

“The first time I felt bad for being an illiterate was when a foreigner enquired about the price of oranges in English. I did not know what he meant. So, I decided to start a school in my village,” Hajabba had said during a felicitation programme.

When Hajabba decided to start a school, he did not get any support. He started the school with 28 children.

The school today has been upgraded to a composite high school and is catering to the educational needs of hundreds of children in and around Newpadpu.

He ran from pillar to post in the Zilla Panchayat to make his dream come true. All cash awards he had received went into building the school. The United Christians Association, moved by the sight of his dilapidated house, built a 760-square-foot house costing Rs 15 lakh for him. 

Hajabba’s life was prescribed for the syllabus of three universities - Davangere, Kuvempu and Mangalore. His success story is also included in a Tulu textbook.

He won the Karnataka Rajyotsava award in 2013, Real Heroes award from TV channel CNN-IBN.

Hajabba, when contacted, said he could not believe his ears when told about the award.

New dreams

The frail vendor, in his 60s, humbly declared that he could achieve all this because of the support of all. Hajabba now dreams of upgrading the school into a full-fledged PU college.