SP Annamalai warns saffron groups, media against trying to twist Dhanyashree suicide case

Feb 19: Bavaguthu Raghuram Shetty was once a typical billionaire with a taste for the high-life.

He splurged on a private jet, vintage cars and two entire floors of the Burj Khalifa, the world’s tallest skyscraper. His website shows him hobnobbing with politicians, Bill Gates and Bollywood royalty.

“The thrill of speed and freedom makes me love cars,” Shetty, 77, told local reporters last year.

Shetty had more than enough money -- at least on paper -- to afford such a lifestyle from companies he helped found, including hospital operator NMC Health Plc and financial services firm Finablr Plc. On Dec. 10, his stakes in the public companies were valued at $2.4 billion, making up the bulk of a fortune spanning education, hospitality and one of the world’s oldest tea companies.

Then, a week later, Carson Block came along.

Block’s investment firm, Muddy Waters, issued a report criticizing NMC’s accounts and disclosing a short position. Since then, Muddy Waters’s scrutiny has snowballed into a troubling scenario for Shetty that sheds light on his complex share arrangements and casts doubts about his net worth. His holdings in Finablr and NMC are worth $885 million, but Shetty’s fortune may now be just a fraction of that, depending on the size of his borrowings.

Filings this month show that Shetty pledged a quarter of his NMC stake against loans with First Abu Dhabi Bank and Zurich-based Falcon Private Bank. Two other shareholders may own half of his reported stake. Another lender -- Al Salam Bank Bahrain -- has already sold some of those shares to enforce security over a loan for Shetty, and NMC said Tuesday that First Abu Dhabi Bank sold another chunk earlier this month.

The situation “seems to have gone beyond some of the issues that Muddy Waters focused on initially,“ said Gavin Launder, a fund manager at Legal & General Investment Management, who owned shares in NMC until October. “The increased scrutiny has unearthed other issues.”

Law firm Herbert Smith Freehills has launched a review of Shetty’s holdings at his request, a spokesperson for the Indian-born businessman said, declining to comment further until the analysis is completed. Shetty resigned Sunday as NMC’s chairman.

In its Dec. 17 report on NMC, Muddy Waters hinted at potential overpayment for assets, inflated cash balances and understated debt. Shares of the United Arab Emirates’ biggest private health-care provider have since plunged 67%, and the firm is now the focus of takeover speculation. The sell-off also spread to Finablr, whose stock has tumbled 64% in that span.

NMC has disputed Muddy Waters’s claims, and the company hired former FBI Director Louis Freeh to conduct an independent review of the short seller’s allegations. Meanwhile, local regulators “are making inquiries with the relevant parties,” a spokesperson for the U.K.’s Financial Conduct Authority said.

Shetty is hardly the only ultra-wealthy person to leverage his assets. Elon Musk has used his shares in Tesla Inc. to obtain personal loans, while Oracle Corp. Chairman Larry Ellison has put up millions of the company’s shares to fund a lavish lifestyle that includes trophy properties, America’s Cup teams and the Indian Wells tennis facility in California.

But such deals can also sour, as demonstrated by Shetty’s lenders selling shares his investment firm pledged. He and his advisers are investigating details of the sales as part of their legal review, according to filings.

To complicate matters, Shetty pledged another batch of NMC stock in 2018 as part of a so-called equity collar arrangement with Goldman Sachs Group Inc. that uses options to limit the impact from share moves. Last month, he also pledged most of his stake in Finablr to refinance a loan from the company’s takeover of foreign-exchange firm Travelex for about $1.2 billion.

BRS Ventures Investment, the UAE-based holding company for most of Shetty’s assets, doesn’t report consolidated financials, preventing a complete analysis of his net worth. His other assets include a catering company, a waste-management firm and pharmaceutical business Neopharma, which four months ago was in the early stages of planning for an initial public offering.

Block, 43, earned his reputation as a short seller a decade ago through targeting U.S.-listed Chinese companies that he claimed were frauds. More recently, his San Francisco-based firm focused on British litigation-finance firm Burford Capital Ltd. and Japanese biotech stock PeptiDream Inc. Short sellers seek to benefit from a decline in a company’s share price.

Shetty founded NMC in 1975 after moving to Abu Dhabi from his native India. He created Finablr two years ago to consolidate his financial brands before listing it on the London Stock Exchange in 2019.

Block said he didn’t anticipate NMC’s shareholding drama.

“I wouldn’t have been able to predict that we’d get these bizarre disclosures about unclear share ownership coming out of the company,” he said in a Feb. 13 phone interview. “This has been obviously a more dramatic unraveling than we usually see.”

Davangere, Jul 19: A 9-year-old sniffer dog ran 12 km in the night to trace a murder accused and helped the police arrest him in Karnataka's Davangere rural area, an official said on Sunday.

"Doberman Pincher Tunga ran 12 km non-stop from the crime spot at Basavapattana in the city to a house at Kashipur in the rural where murder accused Chethan, 25, was hiding and helped us arrest him on July 17," Davangere Police Superintendent Hanumantha Rai said on phone.

Davangere is 260 km northwest of Bengaluru.

"Though Chethan allegedly shot dead his friend Chandra Nayak with a stolen service revolver on July 10 over sharing the booty (gold ornaments) of the theft they had committed recently with two others. We took female dog Tunga to the crime spot on July 16. She led the sleuths to the area where Chethan was hiding with two accomplices," Rai recalled.

While trained sniffer dogs normally run 4-5 km from a crime spot, Tunga could track the accused 12 km away.

When Tunga's handler (Head Constable Prakash) took her to the crime scene at 9.30 pm, she sniffed around and ran 12 km non-stop to Kashipur. She halted at a wine shop and went to a food joint later. Then she stopped at a house nearby at 12.30 am.

The prime accused (Chethan) was present in the house of his relative. He was arrested after he confessed to the theft and the murder.

The police are on the hunt to trace Chethan's two accomplices who fled from the house they were hiding in.

Karnataka Additional Director General of Police (law and order) Amar Kumar Pandey felicitated Tunga on July 17 at a function here for cracking the murder case with its exceptional sniffing traits.

Mangaluru, Apr 7:  In the wake of COVID-19 lockdown in the country, a delegation from Highland Islamic Forum, Mangalore headed by Rizwan Pandeshwar, HIF Ration Kit Co-coordinator met Mangalore South Constituency MLA Mr. Vedavysa Kamath, Mayor Mr. Diwakar and MCC  Opposition Leader Mr. Abdul Ravoof on 6th April with an aim to join their hands with our local authorities in a bid to serve the daily wage earning families in and around Mangalore, during this emergency period. HIF delegation included Secretary Ausaf Hussain, Executive members Nazim SS, Adel Parvez, Nabeel Kudroli and Saleem Makkah.

HIF delegates handed over 300 COVID-19 Emergency relief ration kits to these local authorities, of which 100 each will be distributed to the poor in their respective areas among all faiths irrespective of caste or religion. The ration kits included grocery items and other essential commodities.

HIF Delegation said that Highland Islamic Forum is a prestigious charitable organization in Mangalore operating in the undevided D.K. District since last 8 years offering their hands to the poor and needy families of all faiths like food for the orphans, blood to the patients, water during the crisis time, relief supplies during floods, medicine to the patients, ration kits and homes to the homeless.

During the drinking water crisis in 2016, HIF supplied water facilities to more than 1000 families in Mangalore.  Two years back during the flood, HIF provided necessary commodities to the flood victims in Dakshina Kannada District. During the shortage of blood in Mangalore hospitals, HIF arranges blood donors camps and provide the blood to the patients.  HIF spends one day with orphans every month. HIF charitable activities have been well recognized by the kind hearted people in Dakshina Kannada District.

MLA Vedavysa Kamath, Mayor Diwakar and Mangalore City Corporation opposition leader Abdul Ravoof lauded the selfless efforts of HIF team in serving the poor and needy families in the society.