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
Rasheed Bhai......... No individual is above the Nation. Personal attitudes will not damage the whole NATION and its CONSTITUTION. But a Political Party as a whole can make a difference to the NATION. Being a citizen of INDIA, just evaluate the Nation under BJP rule and CONGRESS rule you will get your ANSWER. Thank God.... your family is safe and secure, but think about those families who were the victims of BJP workers. The intolerance in last 4 years has gone from bad to worse. For God's sake, please keep your difference away especially for this State election and for upcoming General Election in Year 2019. All the best to all the Kannadigas and lets give another chance to CONGRESS to keep the injurious political party BJP much far away.
i think muslims should vote for Ashraf . attitudes of U.T is dangerous than bjp , he is selfish , his last five years attitudes shows he may sell entire community for his personel gains... such candidates should be defeated ....
improve ullal means..... he had not done anytihng to his own place then how we can trust him that he will develop karnataka/India........ i am not anti congress dear. but those who did not work for the welfare of the society should not win this election.... anyone maybe...... staying as loyal, honest, visiting funeral is not that he is good MLA or Minister.......
Abbu , what is your thinking brother, to improve ullal, you will vote against congress, really sad with your thinking , thing about India and people of Bharat , if you divide vote against the situation will be same , vote congress to get good results
use common sense please dont vote any muslims indipendent candidate, vote only congress
Some selfish and jealous people are trying to misguide the community. Instead of supporting and guiding the community to the unity, they try to divide just because of their selfish motives. Community should be very vigilant and aware of what is happening. While all secular forces trying hard to stop this Communal party, this kind of selfish people are trying to divide. They harm the community indirectly. Its better not to give an opportunity to our enemy rather than harming our own community. So be aware of this kind of selfish people. Its very easy for all political parties to be communal but secular parties are struggling. Instead of supporting secular parties, these selfish people trying to divide the votes. Very bad. Need to reject him outright.
Under the current state of affairs, we need to think about the whole KARNATAKA STATE and our great nation "INDIA". This JD(S) candidate is BJP's agent and they are not bother about our STATE & NATION. Even though if he win election this time, I can challenge he will never improve ULLAL. He will just fill his pocket and share few penny to BJP. Let all the Kannadigas be SMART and vote for CONGRESS - because the current situation in INDIA had forced all the MUSLIMS to vote only CONGRESS. We all should think that its CONGRESS V/S BJP only. No other parties should exists at this moment of time. Lets build a very strong and smart INDIA.
better vote all muslims for ashraf ... then how there will be vote divide..... UT khadar has not done anything to improve his place ullal
Good news for BJP
If you vote for Ashraf it is like voting for BJP. Do you want Modi and Amit Shah to win?
Be smart and don't vote for Ashraf
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