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
EVM or VVPAT all under bjp criminals control. For a fare and mandate only BALLOT sytem is the rigth option. Who ever it may be win,no matter we all need a fare system. Each area wise ellection commission must decalre no.of voters list to all party leaders and each poling booth ONE representative of each political party allowed to verify the name of voters and no moblie phone or electronic device allowed them to carry. After election, strong room to be sealed in front of candidate with their signature on the strong room seal. Security to be included with district police;CSF and BSF members. A limited member of each politcal part to be permitted to watch with a specified distance. A fire brigade unit deployed souround the building with advnaced rifle. And their position should not mingled with other security personals. No public gathering allwoed to move around area or permitted to gather. Counting day strong room unsealed after a thooughly
inpseciton of the whole building. These are the main procedures electioncommission must implement.
Ballot box tranportation to under BSF vehicle Befor moving representative of each party permitted to inspect the vehicle. Whether any dirty game set up by the note anti India criminals.
Before 2019 election, all peace loving INDIANS must stand toghether demand or force election commission to implement the best security procedure like above.
Today fake voters least proved in MP and this diecease may spread all over INDIA very soon by the criminals.
So be care full and start the ground work at the earliest.
Last election result of South Kanara & Udupi was a pre planned EVM tampered result.
Very next day of the election few sold channels are came out with some dirty comments in favor to one particular party. From last 4yrs we all Indians observing.
Jai Hind!
Go ahead Mr. Lobo, lets begin from Mangalore.
Yes Mr. Lobo is absolutely correct.
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