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
Dear Ravi Shankar, where were u when hundreds of muslim women were butchered in Gujarat, why cant you give justice to Ahsaan Jafry wife, where is Najeeb and why are u closing eyes while Najeeb's mom is requesting for justice. You are a crocodile and Lomli. You have already fooled Naqwi + Shahnawaz and trying to fool others also. You will not get success in this. You are a hypocrite and opportunist. You may marry those women who are contacting you regarding the issue as they are not respecting Islam and may be ready to marry you.
First give justice to Mrs.Jaffery for burning her husband alive. Give justice to honorable MP E. Ahmed's family for disrespecting his death.
In islam women's are getting more respect,dignity and protection than any other religion. Study religion of islam in its right path then you will understand the beauty of Islam.
Mr. Shankar, let us discuss about this subject after UP election....not a nice time...you are speaking just to grab votes from muslim women....
Mr.Shanker say our PM to respect his wife first nd then say our party to respect women. I think you forget Mangalore pub issue. Everyone respect women. No one is perfect here.
Wonderful Masterjee, which part of the world you had been, bap ray bap Are you Law minister of Hindustan??? so first you learn Hindustan ruling Law, do not try to Implement Your RSS Goonda criminal Law in our beautiful Hindustan, at least you became Law minister to Implement the Law not to break and create problem around Hindustan, now understood that you are afraid to face Uttar Pradesh election, that's why all these bulsh*ts coming up.
Masterjee no chance papa Crimes are increasing loot pat increasing... nothing else to do... so coming to resolve Triple Talaq!!!!!
That's not your business.
Jai hoo Modianna.
Jai hoo Siddanna.
First secure your slipping seats and majority due to people's frustration.......then talk about Tripple talaq......one thing you listen you son of HITLER......when you follow HITLER's footstep it also reminds his END
because you are challenging GOD\s law.....not your man made Manu vad or man made stories...."
Dear Mr. Ravi shankar, this is just for Election Gimmick u cant able handle , jaag utenge indian Muslims ........... be careful
Wrong practice by Muslims has open the doors to Kafirs to interfere in our religious matters ....
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