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
Hindu leaders are afraid of their population going down as people following the true God.... then who will support their party? How will they gain votes....anyhow Islam is growing and growing as much People try to defame it.......can any mai ka laal can say no and prove it....
Why the BD, VHP RSS all these are not banned. They are openly making provocative speaches. Mr. Zakir Naik has never done provocative speaches. But the people like thogadia and many more are creating lot of tensions among people. This also should be equally done.
Allahumma Aizzal Islama wal Muslimeen, Wa azillal kufra wal kafireen,
Ya Allah protect the ummath of prophet Muhammad(P.B.U.H).And save us from the Kufr of the Kafiroon.
Still if we muslims don't get United they will ban Nikah,5 Times prayer, Zakath.
very good decision .. love u modi ...he supported bin laden .... he backed terrorism .. he encouraged love jihad.. bholo bharath mata ki jai... hara hara modi ... jai jai modi .
i heard that zakir naik followers are not celebrating their prophet birthday!!!!!!!
if they are not happy in their own religion then its better to ban all over the universe.. what you say guys?
After 9/11 many reverted to Islam, the same will happen now.
No evidence is produced so far, It is not possible because, he speaks very carefully the truth, that is also without hurting others.
This is their BIASED ruling, they can do anything. Now all specially Hindus will start studying ISLAM and will accept it.
In history many DECEIVERS had temporary happiness.. and they thought they have victory by using the power wrongly ... Time is running and it will end your power too and dont think this evil power will be for eternity...
We will see INSHAA ALLAH (God willing) how your evil power will collapse..
As expected, there is a hidden conspiracy behind it these people are thinking that they can prevent spreading of Islam by this type of drama, Allah need no organization to spread his deen,
ALLEGED terror activities... Still not proven and will never be proved..
\And the disbelievers planned, but Allah planned. Allah is the best of Planners\" Holy Quran: 3:54
I request entire believers not to be panic, everything is moving as per Allah's direction.
Please don't spread rumors, don't be a part of any unlawful activities, don't be panic. Please help the needy irrespective of caste and creed, give your best for the sake of Allah. Whoever does corruption on the face of earth for him a great torment of Allah is waiting. This is Allah's promise. Ya Allah protect your believing slaves from all types of tests & trials, give us patience, give us the strength to face the trials of this world, Aameen. Please make dua for entire believing brothers and sisters of this world."
Good move by government ... so many muslim brothers are saved from brainwashing NGO...
hopefully people will coordinate with government and stops funding this unlawfull NGO
don't worry Dr. Zakir naik Allah is with you. you are not first person who faced such acts of kaafir but take patience and keep trust.
May Allah subhana bless you and our prayer is with you
very sad part is without understanding anything our own religious people making fun of you and celebrating this as their victory..may Allah guide them
A very good decision from Namo.
This is one of the scripted hidden agenda of the communal govt. which was fabricated through Dhaka blast to reach this day. VHP and RSS are two giant terrorist organizations getting foreign funds to create instabilities still at large for years.
Insha Allah IRF will fight legal battle to overcome it.
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