Congress govt’s support to SDPI, PFI endangered national security: VHP

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, Jun 17: A private flight chartered by UAE-based NRI hotelier Praveen Shetty has brought home around 175 people from United Arab Emirates.

This is the third flight chartered by Mr Shetty, chairman of the Fortune Group of Hotels, and president of the Karnataka Non-Resident Indian Forum, to repatriate his employees and other stranded Kannadigas.

The Air Arabia flight with 168 adult passengers and six infants on board took off from Sharjah International Airport at 9:45 pm (UAE time) on June 16 and landed at Mangaluru International Airport at 2:50 am Indian Standard Time on June 17.

In Minneapolis, US an African American, George Floyd lost his life as the white policeman, Derek Chauvin, caught hold of him and put his knee on his neck. This is a technique developed by Israel police. For nine long minutes the knee of the while policeman was on the neck of George, who kept shouting, I can’t breathe.

Following this gruesome murder America erupted with protests, ‘Black lives matter’. The protestors were not just African Americans but also a large section of whites. Within US one police Chief apologized for the act of this. In a touching gesture of apology the police force came on its knees. This had reverberations in different parts of the World.

The act was the outcome of the remnants of the racial hatred against blacks by the whites. It is the hatred and the perceptions which are the roots of such acts of violence. What was also touching that the state of democracy in US is so deep that even the police apologized, the nation, whites and blacks, stood up as a sensitive collective against this violence.

US is not the only country where the brutal acts of violence torment the marginalized sections of society. In India there is a list of dalits, minorities and adivasis who are regularly subjected to such acts. But the reaction is very different. We have witnessed the case of Tabrez Ansari, who was tied to the pole by the mob and beaten ruthlessly. When he was taken to police station, police took enough time to take him to hospital and Tabrez died.

Mohsin Sheikh, a Pune techie was murdered by Hindu Rashtra Sena mob, the day Modi came to power in 2014. Afrazul was killed by Shambhulal Regar, videotaped the act released on social media. Regar believed that Muslims are indulging in love Jihad, so deserve such a fate. Mohammad Akhlaq is one among many names who were mob lynched on the issue of beef cow. The list can fill pages after pages.

Recently a young dalit boy was shot dead for the crime of entering a temple. In Una four dalits were stripped above waste and beaten mercilessly. Commenting on this act the Union Minister Ramvilas Paswan commented that it is a minor incident. Again the list of atrocities against dalits is long enough. The question is what Paswan is saying is the typical response to such gruesome murders and tortures. In US loss of one black life, created the democratic and humane response. In India there is a general silence in response to these atrocities. Some times after a good lapse of time, the Prime Minister will utter, ‘Mother Bharati has lost a son’. Most of the time victim is blamed. Some social groups raise their voice in some fora but by and large the deafening silence from the country is the norm.

India is regarded as the largest democracy. Democracy is the rule of law, and the ground on which the injustices are opposed. In America though the present President is insensitive person, but its institutions and processes of democratic articulations are strong. The institutions have deepened their roots and though prejudices may be guiding the actions of some of the officers like the killer of George, there are also police officers who can tell their President to shut up if he has nothing meaningful to say on the issue. The prejudices against Blacks may be prevalent and deep in character, still there are large average sections of society, who on the principles of ‘Black lives matter’. There are large sections of vocal population who can protest the violation of basic norms of democracy and humanism.

In India by contrast there are multiple reasons as to why the lives of Tabrez Ansari, Mohammad Akhlaq, Una dalit victims and their likes don’t matter. Though we claim that we are a democracy, insensitivity to injustices is on the rise. The strong propaganda against the people from margins has become so vicious during last few decades that any violence against them has become sort of a new normal. The large populace, though disturbed by such brutalities, is also fed the strong dose of biases against the victims. The communal forces have a great command over effective section of media and large section of social media, which generates Hate against these disadvantaged groups, thereby the response is muted, if at all.

As such also the process of deepening of our democracy has been weak. Democracy is a dynamic process; it’s not a fixed entity. Decades ago workers and dalits could protest for their rights. Now even if peasants make strong protests, dominant media presents it as blocking of traffic! How the roots of democracy are eroded and are visible in the form where the criticism of the ruling dispensation is labelled as anti National..

Our institutions have been eroded over a period of time, and these institutions coming to the rescue of the marginalized sections have been now become unthinkable. The outreach of communal, divisive ideology, the ideology which looks down on minorities, dalits and Adivasis has risen by leaps and bounds.

The democracy in India is gradually being turned in to a hollow shell, the rule of law being converted in to rule of an ideology, which does not have faith in Indian Constitution, which looks down upon pluralism and diversity of this country, which is more concerned for the privileges of the upper caste, rich and affluent. The crux of the matter is the weak nature of democracy, which was on way to become strong, but from decades of 1980s, as emotive issues took over, the strength of democracy started dwindling, and that’s when the murders of the types of George Floyd, become passé. One does complement the deeper roots of American democracy and its ability to protect the democratic institutions, which is not the case in India, where protests of the type, which were witnessed after George Floyd’s murder may be unthinkable, at least in the present times.