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
Cheering PAK against india is wrong. But Anyone can celebrate any team. There is no law.
@milan u sound like, terrorism is wrong, but anyone can be terrorists. there is no law. :P
shame on jihadist muslims who back stab our motherland , shameless beggars .kick them out of india or hack them .
How cheering for Pakistan Cricket Team is wrong? Can we then support England team when the British had ruled and looted India for 200 years? There are numerous England supporters in India but no one is against them! Can we support France in football when French had looted and invaded India? Why do Indians support Brazil or France or Germany in FIFA when Indian team is not playing in it? Indians only need to support Kabbadi instead... Come on guys, just keep aside your enemity atleast in sports.. Support whichever team you like..
They should not have celebrated Pak win openly...if at their home does not matter but not openly....their soldiers are killing our innocent soldiers....
Cheering for a team of enemy country, Celebrating the victory of enemy country against our own country is not at all justified. We all Indians should be ONE against such country in any activity. There is hard feeling or soft feeling PERIOD.
Are we going to celebrate victory of Bangladesh against India??? No one does that. Then, why Pakistan???
Some fools are celebrating pakistan victory and saffron b.fools are exaggerating it for political mileage
Its proved many times who z bloody anti nationalists , when rama sena hoisted pakistan flag in Sindagi, Mutalik gang s bomb blast in hubballi court , ABVP s Pakistan zindabad @ JNU and now one more allegation, grow up sangis this style bcom old
Soon after the match many of Indian team players wholeheartedly congratulated Pakistani team and shook hands with them. Are Indian team players also anti-nationals? Do they also face sedition case?
Good point Rajan Shetty. Keep commenting. Silence of nationalists will encourage anti-nationals.
These gandutva guys have a very little heart
Whole cricket team of india should be in jail including gavaskar and gambhir . They congratulated Pakistan and praised them...
Actually the fact is ...this is the result of Media propaganda by RSS since many years ......................they were taunting Muslim youths telling Pakistan which they have no connection and bond is real friend......then simply youths started to anger the Saffronists by supporting pakistan verbally ....but some youth still using the same tactic to anger RSS ...but Rss a anti national organization uses the same to polarize ...unlike RAMA SENE which hoisted Pakistan Flag in Sindhagi ...is out of the talk now ????????????
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