Congress attacks Swamy's cavalcade with eggs, ink

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.”

Mangaluru, June 10: The first direct repatriation flight from Damma to Mangaluru International Airport under Vande Bharat Mission will be operated on June 21.

Thousands of people from coastal districts of Karnataka are stranded without flights in different parts of Saudi Arabia after the announcement of covid lockdown in March this year. 

Even though the government of India launched Vande Bharat Mission to repatriate Indian expatriate through special flights, no flight was scheduled from Saudi Arabia to Mangaluru.

Several organisations had exerted pressure on the government of India and government of Karnataka to bring back stranded Kannadigas from Saudi Arabia.  

With the sole intention of helping the stranded Kannadigas, a few philanthropists in Saudi Arabia last month formed an NGO called Saudi Kannadigas Humanity Forum under the leadership of Zakariya Bajpe and Sheikh Expertise. 

Pathnamthitta, Mar 10: A man under observation for suspected coronavirus infection at the isolation ward of the district hospital here fled, but was tracked and brought back within hours. The man was among those who had interacted with the three-member family who returned from Italy and have tested positive for the virus.

Pathnamthitta district collector PB Nooh said one person, who was under observation at the general hospital had escaped but was later tracked and brought back. "If even a single person under observation goes out, it is a threat. This is a public hazard".

The one excercise which the health authorities have to undertake on Tuesday is to see how many people had come incontact with this person after he left the hospital. There is need to isolate those people with whom he mayhave come into contact, the collector said "This is the timeto behave in a very socially responsible manner".

With six positive cases being reported, the state government has already warned that stringent action would be taken against those flouting the directions of the health department. Health Minister K K Shailaja has warned that those coming from COVID19 affected nations, should report to authorities on arrival in the state, failing which a case would be registered against them under the Public Health Act.

A 3-member family, which had come from Italy recently and had tested positive along with two of their relatives had not reported their arrival to the authorities, health officials said.

At least 733 people who had come in contact with them have been tracked, the collector said and have been placed under observation. While 18 have been admitted to isolation wards in hospital the remaining are under home surveillance.

A two-year-old child is among those under obsevation at the isolation ward, health department sources said. The tracking excercise would continue on Wednesday also.

Meanwhile, an awareness class was held for migrant workers at Pathnamthitta district this morning. However, no directions have been issued to workers fromother states to leave the state. "We are planning to give extra care to migrant workerswith labour officer visiting their colonies and as part of theawareness drive and speaking to them in a language theyunderstand," he said.

A three-year-old boy, who arrived with his parents in Kochi from Italy, tested positive on Monday, a day after three people, also with travel history from the European nation,were declared positive for the virus along with two of their relatives.

The Health Minister has said surveillance system would be stregthened with the support of ASHA workers, civic authorities and ward members and resident associations. Presently, 1,116 people are under surveillance in thestate for the corona virus, 967 in home quarantine and 149 in isolation wards of hospitals. Two 90-year-old relatives of the Pathnamthitta family, who tested positive, have been admitted to Kottayam medicalcollege hospital and their samples have been sent for testing, she said. "If they test positive for the virus, it would be highlyrisky", she had said.