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.
Writing on his Facebook page, Justice Katju demanded death sentence for the cops involved in the encounter.
Comments
saudi bopanna ka bap ka hai. And who are you to say whether it is a muslim country or not. boppa
Saudi tere bap ka hai Kya ? Saudi is NOT Muslim country,.
YES WE ARE WITH YOU
Exactly. this is the fake encounter and cops deserve the death penalty.
Katju rightly said. Murderers along with masterminds deserve it.The trend of fake encounters has to be stopped in future.
Yes, many Indians believe that it was custodial killing/fake encounter, and a good majority also agree with Katju. All these Indians, including Katju - A former supreme court judge, are Anti-Nationals.
Sanghi chappars calling a qualified Rtd. chief justice of supreme court \Desh Drohi\". I mean why do people even respond to such comments and trolls.
None the less, Katju is also against many Islamic values and practices. But in this case, he has raised his voice for justice."
#2 Bopanna, KSA
What are you doing in KSA? It is a muslim country and is it allowed to you to work there? How can you feed your family in the wealth which is earned in muslim country. You hate Ummah then in this case you are a hypocrite.
Remember this soon or later truth will prevail and that time you will be sad. In your view if Justice Katju is desh drohi then what about Praveen togadiya, Karnal purohith, sadhvi prajna, Swami asimanad and other all sangi terrorists??
You are right Mr.katju. Guys look @ video, and suspects prisoners were raising hands for surrender. But cops deliberately fired at them. And if you watch last night debate with bloody BJP spokesperson the way of answering was very shameful. Just they were struggling to answer the TV anchors questions.
Bopanna, if it had happened to you or any of your family member you would have felt the same thing.....no one has proved them guilty....they were under trial...police are not doing their job...instead encountering them by putting Simi tag....it is not good for a democratic country like India.....
How much does the Ummah pay you for such statements?
This guy is a Desh drohi
Death penalty for COPS in India !!!!!!!!!.....Forget it man
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