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
Well said Common Man, All Pakistani supporters and their family, followers should be thrown to Arabin sea, if not sufficient throw them to burning fire. Please include - MP BJP IT cell who collected military intelligence of our Motherland and sold them to Pakistan which resulted in the death of hundreds of our brave soldiers. Include also the Napunsak Parivar who go to Pakistan without any invitation, eat beef biryani, attend marriage, wear and offer Sari & Bangles to Pakistanis. Also include all coward anti-nationals who allowed Pakistani Military intelligence officers to visit our Military bases to steal sensitive information. also include all those anti-nationals who issues Fatwas and certificates to Indian Muslims to go to Pakistan and the list is endless......
ಸೋಲುವ ಭೀತಿ. ಬಾಯಿಯಿಂದ ಏನೇನೋ ಬೊಗಳೆ ಮಾತು...ಪಾಪ.
Who is good or bad people better know dat. Y b comunal for vote. These politicians wil not spare their own parents for votes. Y to bring god between vote bank? just to b in power these cheap people can get to any level
non sense ; mr sunil kumar doesn`t know that the whole universe belongs to Allah the almighty . (Allah - the creator, the sustainer and the cherisher of the universe, All praise is due to him ) . and this creations of Allah is comparing ,associating him with his creations is the biggest non forgivable sins of the universe.
People from his constituency shall learn from such speech of their MLA. In Addition Mr. Rahim Uchil has to understand the agenda of so called political party who have always defended for the controversy of so called political party. Now the election not between Allah and Rama it is between Mr. Rahim Uchil and Mr. Sunil Kumar. Jai Ho.
This speaker is a disgrace to Karnataka. May Lord Rama save people of Karkala who made him and MLA.
Well said Sunilanna. Who the hell cares for such petty cases. It’s all common for nationalists. It’s high time all nationalists get united and throw Pakistani supporters to Arabian sea.
In last election he had declared that it will be a clash between Modi and Jihadi. Now he knows that no people will vote for Modi. So started new slogan. What a shameless and uncultured people these politicians are!!!
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