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.
According to reports, the Mumbai Police has recommended that the state book Dr Naik under the Unlawful Activities Prevention Act (UAPA) and ban IRF.
Comments
First attempt failed..... Maharashtra govt. Gave clean chit...now BJP center running behind Muslim schools and scholars......khujlee of people flowing in to Islam...no one can stop this if god wills....
FIRST BRING THE MALLYA TO INDIA
THEN FOCUS ON THE ZAKIR NAYAK ISSUE ,, ONCE POLICE GAVE HIM CLEAN CHIT RIGHT AGAIN THEY MAKING SOME DRAMA FOR DR ZAKIR NAYAK...
Haha Try hard RSS terrorists. Hand in Glove with Cow Swamy. Whatever you do, Cowswamy has to pay 500 crore to Dr. Naik.
India belongs to Muslims as much as Hindus. We need our own Main Stream Islamic Channel in India. This is our constitutional right. We Muslims must fight and come out on the street for following channels to be shown in India Makkha Channel, Madina Channel & Peace TV.
We Muslims has to work hard for Da'awa in India. Distribute Islamic CD's on comparative studies to non Muslims so that they can Judge between right and wrong.
We will wait and watch extent of RSS terrorism. Gulf countries should freeze RSS terrorists & Sympathizers accounts. They should put pressure on US govt to declare RSS organization as terrorist organization.
In Sha Allah End of Times Now Channel & Cowswamy. I have serious doubt on Maroof raza (Times Now Consultant) whether he is Muslim.
Mr. nothing but truth, for you he might seem like a Joker, for Allah dr. Zakir naik is his obedient slave, and Allah loves his slaves like anything which is beyond the capacity of human being's imagination. Fear Allah, fear the torment of Allah, if you don't know yet, refer to the holy Quran just once. We pray almighty Allah to protect dr. Zakir naik and in sha Allah you will see. Allah says in the holy Quran \Wakul Ja al haq wa zahkal batil, innal batila kaana zahooka\" The truth has arrived and the falsehood perished, Indeed falsehood is bound to perish."
Now let Mr. Joker Naik present his illogical logic in front of court. He would then understand Court is not a place to bluff as he does so often among innocent half-educated public. The heat is on..
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