UAE court issues worldwide freezing order on BR Shetty’s assets

News Network
July 25, 2020

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

UAE Muslim
 - 
Sunday, 26 Jul 2020

give money to RSS now to kill muslim....GOD will turn the table for moran like you BR,...shamed of tulu guy cheated the UAE govennment...not root in hell

ANONYMOUS
 - 
Saturday, 25 Jul 2020

amount should be 8 billion dollar and not 8 million dollar

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June 11,2020

Mangaluru, June 11: The Saudi Arabia based Expertise Contracting Company, which is repatriating its employees to India and other countries, today allocated around 90 seats of one of its chartered flights to Kannadigas stranded in Saudi Arabia. 

The Gulf Air flight took off with around 175 passengers on board from Dammam International Airport around noon local time. It is expected to land at Mangaluru International Airport at around 7 p.m. Indian time. 

In fact the company had chartered the flights only to repatriate its employees. However, due to the lack of special flights under Vande Bharati Mission, the company decided to help the other stranded Kannadigas in Saudi Arabia, who had approached Saudi Kannadigas Humanity Forum for help. 

A company official said that around 2,000 employees from various countries in the Indian subcontinent are being repatriated, of which 1,665 are Indians.  Already hundreds of them have reached India, and hundreds are still waiting for repatriation. 

“We are grateful to Expertise for allowing to travel in the flight which the company had chartered to repatriate its own employees,” said one of the passengers before boarding the flight at the airport.  

Director of Expertise, KS Shaikh said the 20-year-old Expertise group, one of the largest conglomerates in the GCC operating in petrochemical and heavy equipment sectors, has more than 10,000 employees and their family members in the Gulf, mainly in Jubail, one of the largest industrial cities.

Of these, the company has chosen over 2,000 employees for the covid-related repatriations considering various emergencies. He said 12 chartered flights have been engaged to carry out the repatriation exercise to the Indian subcontinent.

Comments

Mohammed Arbaz alam
 - 
Saturday, 13 Jun 2020

DUBAi se delhi normal flights kab chalu ho ga ham log bhaut parsan hai 

3 months ho geya room nahi Pia's a nahi dawa ke liya paisa nahi hai khane 

Ke liya nahi hai

Nagendra Dm
 - 
Saturday, 13 Jun 2020

Dear sir am working in saudi Arabia before two months now no job please bring me back 

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News Network
July 26,2020

Mangaluru, Jul 26: Karnataka government has initiated steps to provide insurance cover for priests and others working in temples coming under the Endowment Department -- a move that will benefit 50,000 people and their families.

Speaking to media here on Saturday evening, Minister for Endowment Kota Srinivas Poojary said there is a need to implement the decision at the earliest to provide relief to the priests and families of employees working in temples.

Department officials have been directed to include employees of state-owned temples under the Pradhan Mantri Jeevan Jyothi Bima scheme and also enrol them under State Bank of India’s group personal accident insurance policy at the earliest. The Central insurance scheme will provide Rs 2 lakh cover to family members in case of death due to accidents.

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News Network
May 18,2020

Dubai, May 18: An Indian working in a mining company in the UAE has become the latest expatriate to have lost his job for hate-filled social media posts targeting Islam and Muslims.

Brajkishore Gupta was fired without notice for calling Indian Muslims 'coronavirus spreaders' and hailing the Delhi violence as 'divine justice' in his Facebook posts.

Gupta, who is from Chapra, Bihar, was employed by Stevin Rock, a mining company headquartered in Ras Al Khaimah city.

"This isolated incident involving a junior employee was investigated and dealt with immediately resulting in the termination without notice of this person's employment with Stevin Rock," said the company's business development and exploration manager Jean-Francois Milian.

"Our company policy supports the direction of the UAE government in promoting tolerance and equality and strongly renouncing racism and discrimination and we have sent communications to all of our employees irrespective of their religious or ethnic background reminding them that any such behaviour is unacceptable and will lead to immediate dismissal," Milian was quoted as saying in the report.

Three Indians based in the UAE were either fired or suspended from their jobs for "Islamophobic" posts on social media early this month.

On April 20, India's ambassador to the UAE Pavan Kapoor had warned Indian expatriates against such behaviour.

"India and UAE share the value of non-discrimination on any grounds. Discrimination is against our moral fabric and the Rule of law. Indian nationals in the UAE should always remember this," he said in a tweet.

Last month, Sharjah-based businessman Sohan Roy had to apologise for "unintentionally hurting religious sentiments" through his poem, which alluded to a Muslim religious group.

In March, chef Trilok Singh was fired from a restaurant in Dubai for an online threat against a student in Delhi over her views on the Citizenship Amendment Act.

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