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.”
Comments
Ella sahodarammarkk oru advise, nanga nanga penagitt nangalo onnamatho dushman BJP gellum pole aakiranda, please please ninga ellarum onnaitt genduro chance ullo nangalo oru candidate barumpole aakonu, nangalo raya innoru UP do pole aakiranda
Brother,
Being in respectable position as a minister, he should have thought twice before making a statement. If somebody scribbles against him or speaks against him in social media like Fb and whatsapp let him file a case against them. Or let him condemn them. ಇವರನ್ನು ಟೀಕಿಸಿದವರೆಲ್ಲ ಢೋಂಗಿ ಮಾಡಿ ಗಲ್ಫ್ ಗೆ ಹೋದವರಾ? . ಧಾರ್ಮಿಕ ಕಾರ್ಯಕ್ರಮದಲ್ಲಿ ಮಾತನಾಡುವಾಗ ಸ್ವಲ್ಪ ಚಿಂತಿಸಿ ಮಾತನಾಡಿದರೆ ಅವರ ಘನತೆಗೆ ಒಳ್ಳೆಯದು.
In next election, people will decide who is the best loafer and teach him a good lesson. #Ashrafbhai Nxt Mla #UTK Koragajjana gudige
UT Khader Saab. Most of the NRIs from your region know very well that some of your opponents are not just loafers but are ugliest creatures and communal goons. But you don’t lose cool and respond to them in public. Let them go to hell. We are with you. You are a role model for many. So kindly don’t react to the loafers in their own language.
My humble request to UTK is to ignore the cheap level criticism by communal goons. Be it Bajrangis or SDPI. They really don’t deserve the attention of a great social worker and politician like UTK.
UT Khader has not twisted his statement. He never said that all NRIs are Dongi Maadi Gulf ge hodavaru. He said that Dongi Maddi gulf ge hodavaru trying to teach him how to live. And he doesn’t care them. That’s true. Nirva Modi and Vijay Malya also included in dongi parties.
ಯು. ಟಿ ಖಾದರ್ ಓರ್ವ ಶಾಸಕ ಹಾಗೂ ಸಚಿವ ಎಂಬ ಕಾರಣಕ್ಕಾಗಿ ಅವರನ್ನು ಎಲ್ಲಾ ಜಾತಿ, ಮತ, ಧರ್ಮ ಪಂಗಡದವರು ಅವರವರ ಧಾರ್ಮಿಕ ಕಾರ್ಯಕ್ರಮಗಳಿಗೆ ಆಹ್ವಾನಿಸುತ್ತಾರೆ. ಜನ ಪ್ರತಿನಿಧಿ ಎಂಬ ನೆಲೆಯಲ್ಲಿ ಖಾದರ್ರವರು ದೇವಸ್ಥಾನ, ದೈವಸ್ಥಾನ, ಚರ್ಚು, ಮಸೀದಿ, ಉರೂಸ್, ಸುನ್ನಿ, ಎಪಿ, ಈಕೆ, ಸಲಫಿ, ಜಮಾತೆ ಇಸ್ಲಾಂ ಎಂಬ ಬೇಧ ಬಾವ ಇಲ್ಲದೆ ಭಾಗವಹಿಸುತ್ತಾರೆ. ಅವರವರ ನಂಬಿಕೆಗಳನ್ನು ಗೌರವಿಸುತ್ತಾರೆ. ಅಂತೆಯೇ ಕೆಲ ದಿನಗಳ ಹಿಂದೆ ತಮ್ಮ ಕ್ಷೇತ್ರದ ಕೊರಗಜ್ಜ ಕಾರ್ಯಕ್ರಮದಲ್ಲೂ ಭಾಗವಹಿಸಿದ್ದರು. ಪ್ರತೀ ವರ್ಷವೂ ಅವರು ಆಹ್ವಾನಿಸುತ್ತಾರೆ ಮತ್ತು ಖಾದರ್ ಭಾಗವಹಿಸಿತ್ತಾರೆ ಇದನ್ನೇ ನೆಪವಾಗಿಸಿಕೊಂಡು ಕೆಲವರು ವಿದೇಶದಿಂದ ಸಾಮಾಜಿಕ ಜಾಲತಾಣದ ಮೂಲಕ ನಿರಂತರ ಖಾದರ್ರವರನ್ನು ಅತ್ಯಂತ ಹೀನಾಯವಾಗಿ ಹಿಯ್ಯಾಳಿಸಲು ತೊಡಗುತ್ತಾರೆ. ಸಾಮಾಜಿಕ ಜಾಲತಾಣದಲ್ಲಿ ಸಕ್ರಿಯರಾಗಿರುವವರು ಅದನ್ನು ಗಮನಿಸಿರಬಹುದು. ಖಾದರ್ರವರನ್ನು ಹಿಯ್ಯಾಳಿಸಲು ಅವರು ಬಳಸುತ್ತಿದ್ದ ಶಬ್ದ ಮತ್ತು ಭಾಷೆ ಯಾರನ್ನೂ ಒಮ್ಮೆ ರೊಚ್ಚಿಗೆಬ್ಬಿಸುವಷ್ಟು ಕೆಟ್ಟದ್ದಾಗಿರುತಿತ್ತು. ಅದಕ್ಕೆ ಪ್ರತಿಕ್ರಿಯೆಯಾಗಿ ಬರುತ್ತಿದ್ದ ಬರಹಗಳೂ ಅಷ್ಟೇ ಪ್ರಚೋದನಾತ್ಮಕ ವಾಗಿರಿತ್ತಿತ್ತು.
ಈ ಎಲ್ಲಾ ವಿಚಾರವನ್ನು ಉಲ್ಲೇಖಿಸುತ್ತಾ, ಅವರಿಗೇ ಸಂಬಂಧಿಸಿ ಉರೂಸ್ ಸಮಾರಂಭದ ವೇದಿಕೆಯಲ್ಲಿ ಖಾದರ್ರವರು... "ಊರಲ್ಲಿ ಮೋಸಮಾಡಿ ವಿದೇಶಕ್ಕೆ ಹೋಗಿ ಕುಳಿತು ನನಗೆ ಬುದ್ದಿ ಹೇಳುತ್ತಿದ್ದಾರೆ. ನಾನು ಎಲ್ಲಾ ಕಡೆ ಹೋಗಿದ್ದೇನೆ, ಹೋಗುತ್ತೇನೆ .. ನಾನು ತಪ್ಪಿದರೆ ನನ್ನನ್ನು ತಿದ್ದಲು ಉಲೆಮಾಗಳಿದ್ದಾರೆ. ಈ ಲೋಫರ್ ಗಳಿಂದ ನಾನು ಪಾಠ ಕಲಿಯುವ ಅಗತ್ಯವಿಲ್ಲ...." ಎಂದು
ಹೇಳಿದ್ದಾರೆ.
ಈ ವಿಡಿಯೋದ ತುಣುಕನ್ನು ವೈರಲ್ ಮಾಡಿ ವಿದೇಶದಲ್ಲಿರುವ ಎಲ್ಲಾ ಪ್ರವಾಸಿಗಳನ್ನು ಖಾದರ್ ಅವಮಾನ ಮಾಡಿದ್ದಾರೆ ಎಂದು ಬಿಂಬಿಸಲು ಪ್ರಯತ್ನಿಸುತ್ತಿರುವುದನ್ನು ನಾವು ಕಾಣುತ್ತಿದ್ದೇವೆ. ಈಗಲು ಕೆಲವರು ಖಾದರ್ ವಿರುಧ್ಧದ ತಮ್ಮ ಬರಹ ಹಾಗೂ ವಾಯ್ಸ್ ಮೆಸ್ಸೇಜುಗಳಲ್ಲಿ ತೀರಾ ಕೆಟ್ಟ ಶಬ್ಧ ಭಾಷೆ ಬಳಸುತ್ತಿದ್ದಾರೆ. ಸಾಮಾಜಿಕ ಜಾಲತಾಣಗಳಲ್ಲಿ ಸಾರ್ವಜನಿಕ ಮರ್ಯಾದೆಯನ್ನು ಮೀರಿ ನಡೆಯುತ್ತಿರು ಖಾದರ್ ಪರ ವಿರೋಧ ಚರ್ಚೆಗಳು ಸಮುದಾಯದ ಮಾನ ಹರಾಜು ಹಾಕುತ್ತಿದೆ ಇದು ಇಲ್ಲಿಗೇ ನಿಲ್ಲಲಿ ಎಂಬುದು ಎಲ್ಲಾ ಪ್ರಜ್ಞಾವಂತ ಮುಸ್ಲಿಮರ ಅಪೇಕ್ಷೆ.
UTK has insulted innocent loafers by calling communal goons as loafers
Mr. U T Khader,
Please do not twist your statement. You clearly made a statement " Dongi maadi gulfge hodavaru". Even i was a huge admirer of you till date for your simple nature and work which you have done during your tenure as a minister and MLA. But that one statement has made a big difference. I watched the video 2 to 3 times to check about the background. You were referring to a group which conducts meeting in hills(gudde) under torch light. But hope you remember that same group was in your favor when you first contested for bye-election after your father's demise. My request is not to have over confidence, which may result in ego and ultimately result in losing. So many egoistic emperors in the world have lost their empire and power. Therefore, you are not a match at all. If you want to condemn a particular group or party, name it and condemn it in specific & do not make generalized statement. Your statement of "DONGI MAADI GULFGE HOGIDDU" has hurt the sentiments of NRI community who have come here away from their families to earn a livelihood.
Kindly take your time to tender an apology for your words. May Almighty Allah bless you with good health and strength to serve the society and community in a better way.
I think in this state election only one thing will happen for sure "Ibbara Jagala Muraneyavanige Laaba"...
Last year Sangh Parivar leaders were hurt when UT Khader said those who oppose constitution should be hit with slipper. This clearly proved that they oppose constitution. Now some SDPI leaders are hurt when UT Khader said that he wants to learn lesson from Ulema and not from loafer or a person who avoids work and spends time doing useless things. This also proved who are loafers.
“Loafer” is not an abusive or derogatory word. “Communal” is more abusive and insulting word compared to “Loafer”.
Election won't decide anyone's fate. Fate will be decided by the Creator. Our prayers are with self-less politicans like UT Khader.
Feel very sad to see some fringe groups unnecessarily pulling the legs of an honest politician in the name of religion. When I embraced Islam several years ago Muslims used to spend time by fighting each other on religious matters and absurd rituals like Urus, Maulid, ratheeb etc. Now Muslims are fighting with each other by forming political parties. When these Muslims will learn lessons? When they realise their responsibilities? When they stop petty politics?
First of all loafer is not an abusive word. It just means an idle person or a ‘poli huduga’ in Kannada. But the uneducated loafers do not know the meaning of loafer i think. That’s why they making it a big issue.
Dikkara ninage Mr Khader
Bara barutha raayara kudure katthe yaayithu.....
Khader bhai... muslim community had very good hope on you & supported you on full extent... But you are going towards normal politician behind money & seat.... SUPPORT doesnt mean that only to muslims... A true leader will treat all community fair & equally... which congress & other party leaders couldnt do... Instead you are blaming our muslim brothers without having basic knowledge.... Politician doesnt understand normal person way of living that how they spend daily life & how much efforts they are taking to fulfill their family needs...
In sha allah your fate will be decided in this election..
Let the Election results tell who are loafers and cheaters In sha Allah.
Add new comment