JDS worker chops off Congress activist’s arm with machete

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.

Karnataka on Saturday reported 12 new cases, the highest in a single day so far, taking the tally in the state to 76.

Late at night, the Mysuru district commissioner said five more people had tested positive in the district. But it was yet to be confirmed by the state health department.

Of the cases, 41 are from Bengaluru, eight from Chikkaballapur, while Uttara Kannada and Dakshina Kannada districts have seven each.

Interestingly, the highest number of patients are those from Dubai or those who had transit travel via Dubai. Out of 76 cases, 17 cases (22%) have travel history to Dubai, the capital of Emirate of Dubai and the most populous city in the United Arab Emirates (UAE).

Medical Education Minister Dr K Sudhakar, who is also in-charge of COVID-19 operations, said that Dubai has been a major concern as far as Karnataka COVID-19 patients are concerned. “Most of the positive cases have come through Dubai suggesting something amiss there,” he said. 

Echoing the same, Dr Prakash Kumar, Joint Director, Communicable Diseases, Department of Health and Family Welfare, said, “The layover in Dubai is around six to seven hours. We are seeing Dubai to be the new epicentre of the virus as far as India is concerned.”

UAE was initially not on the list of countries from where passengers were screened. It was added much later when clusters of patients with travel history to Dubai began popping up all over the country.

Patient-19 has infected the maximum so far.

Out of the 12 cases that tested positive on Saturday, five are contacts of Patient 19. All of them are being treated at a Chikkaballapur hospital. Two of them are from Hindupur, Andhra Pradesh, and three are residents of Gauribidanur taluk in Chikkabalapur district.

P19, a 31-year-old man from Chikkaballapur, had travelled to Mecca, Saudi Arabia, and returned to India on March 14. Existing patient clusters suggest that P19 had infected the maximum number of people. Officials did not reveal how many people he originally travelled with to Mecca.

Amid the rise in cases, Jawaid Akhtar, Additional Chief Secretary (Health), maintained that the state had not reached stage 3. But he had no definitive answer as to how the Mysuru patient contracted the virus despite health officials he was in touch with not testing positive.

Health Commissioner Pankaj Kumar Pandey said around 1,000 primary contacts of all positive cases have been classified as high-risk and low-risk. The high-risk patients are in government hospitals while the low-risk ones in quarantine facilities.

Bengaluru, Jun 9: JD(S) patriarch H D Deve Gowda on Tuesday filed his nomination as party's candidate for June 19 Rajya Sabha elections from Karnataka.

The former Prime Minister was accompanied by his sons former Chief Minister H D Kumaraswamy and former Minister H D Revanna, state JD(S) chief H K Kumaraswamy and others, as he filed his papers at the office of Legislative Assembly Secretary M K Vishalakshi, who is the returning officer for the polls. JD(S) on Monday had announced that Gowda will be contesting the Rajya Sabha polls.

Announcing the decision, Kumaraswamy had said Gowda decided to contest following the request of Congress President Sonia Gandhi, several national leaders and party legislators, and it was not an easy task to "persuade" him to enter the Rajya Sabha.

The JD(S), which has 34 seats in the assembly, is not in a position to win a seat in Rajya Sabha on its own and will need support from the Congress with its surplus votes. A minimum of 45 votes are required for a candidate to win. If he wins, this will be the second Rajya Sabha entry for 87-year-old Gowda, the first time being in 1996 as the Prime Minister.

Gowda was defeated in Tumkur constituency by BJP's G S Basavaraj by over 13,000 votes in the 2019 Lok Sabha polls. As joint candidate of the then ruling Congress-JDS coalition, Gowda had chosen to contest from Tumkur at the last minute after vacating Hassan-his home turf, to grandson Prajwal Revanna (a current MP).

Election is scheduled on June 19 to fill four Rajya Sabha seats from Karnataka, represented by Rajeev Gowda and BK Hariprasad of Congress, Prabhakar Kore of the BJP and D Kupendra Reddy of JD(S) that will fall vacant on June 25, with their retirement. Today is the last date for filing nominations. With BJP not fielding any candidate against Gowda, his election is likely to be unanimous.