Kerala expat faints after winning Dh10 million in Abu Dhabi raffle; 9 out of 10 winners are Indians

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.”

Istanbul: Mosques in Turkey reopened on Friday for mass prayers after more than two months as the government further eased strict restrictions to stop the spread of the new coronavirus.

Turkey has been shifting since May to a "new normal" by easing lockdown measures and opening shopping malls, barbershops and hair salons.

President Recep Tayyip Erdogan has said many other sites -- restaurants and cafes as well as libraries, parks and beaches -- will reopen from Monday.

Hundreds of worshippers wearing protective masks performed mass prayers outside Istanbul's historic Blue Mosque for the first time since mosques were shut down in March.

In the Ottoman-era Fatih mosque, worshippers prayed both inside and outside, with the municipality handing out disinfectants and disposable carpets.

"I have waited a lot for this, I have prayed a lot. I can say it's like a new birth, thanks to God, he has brought us back here," he said.

Another worshipper, Asum Tekif, 50, said: "It has a been a long time... we missed the mosques."

Turkey, a country of 83 million, has so far recorded 4,489 coronavirus-related deaths and 162,120 confirmed cases.

Prayers in Hagia Sophia

Muslim clerics on Friday recited prayers in the Hagia Sophia, the world famous Istanbul landmark which is now a museum after serving as a church and a mosque.

The prayers were held to celebrate the anniversary of the conquest of Constantinople, today's Istanbul, by the Ottomans in 1453.

"It is very important to commemorate the 567th anniversary of the conquest ... through prayers in the Hagia Sophia," said President Recep Tayyip Erdogan, who attended the ceremony via videoconference.

The stunning edifice was first built as a church in the sixth century under the Byzantine Empire as the centrepiece of its capital Constantinople.

After the Ottoman conquest, it was converted into a mosque before being turned into a museum during the rule of Mustafa Kemal Ataturk, the founder of modern Turkey, in the 1930s.

But there have been hints about reconverting the Hagia Sophia into a mosque. Last year, Erdogan himself mooted the possibility of turning Hagia Sofia museum into a mosque.

Such calls have sparked anger among Christians and raised tensions with neighbouring Greece.

In 2015, a Muslim cleric recited the Koran in the Hagia Sophia for the first time in 85 years to mark the opening of an exhibition.

After Friday prayers at the Blue Mosque, a small group of Muslim worshippers shouted: "Let the chains break and let the Hagia Sophia open".

The group was later dispersed by the police who stopped them from protesting near Hagia Sophia that sits immediately opposite the Blue Mosque.

Bengaluru, Jul 16: Chief Minister B S Yediyurappa led state government’s move to amend the Karnataka Land Reforms Act was “a scam bigger than illegal mining” as farm lands worth Rs 50,000 crore will be lost, according to Leader of the Opposition Siddaramaiah.

The government on July 13 promulgated an ordinance to amend the Karnataka Land Reforms Act, allowing non-agriculturists to buy agricultural lands while also increasing the cap on the extent of such land a person or a family can hold.

Plus, the amendment will have retrospective effect, meaning over 13,000 cases registered over the years for alleged violations in acquiring farm lands will be vacated or dismissed.

“There are 13,814 cases across all 30 districts. Let’s assume that each case involves four acres of land. That’s 52,000 acres. These are lands worth Rs 45,000-50,000 crore,” Siddaramaiah told a news conference. “This is a scam bigger than illegal mining. While the mining scam had specific players, here the entire government has fallen for the corporate bodies and real estate lobby.”

The illegal mining scam unearthed when the BJP was in power was pegged at Rs 35,000 crore, which became a poll plank for the Congress to come to power in 2013.

Calling it a “black” legislation, Siddaramaiah said the amendments to the land reforms law will result in large portions of farm lands becoming real estate. “This will destroy the farming community. They’ll now have to stand at the doors of corporate bodies. Farmers will sell their land and real estate will come. What’ll happen to food production?” he said.

The ordinance amends Section 63 and 80 of the Act, while omitting Sections 79A, B and C. “These sections were inserted in 1974 under the D Devaraj Urs government. It was a revolutionary, progressive step to protect farmers and ensure social justice,” Siddaramaiah said.

The Congress leader claimed that there was a “biggest conspiracy” behind this. “All this is being driven by the Modi government. They want to privatize more and more so that reservations will go. They want to bring back the zamindari system,” he said, citing the examples of some other recent amendments to other laws.

The timing of the ordinance is suspect, he said. “If the Yediyurappa government really wanted to help farmers and had good intentions, they could’ve brought this before the Assembly or placed it for public discussion. Instead, they’ve made use of the lockdown period to promulgate the ordinance,” he said.

The Congress will fight the ordinance till it gets withdrawn, Siddaramaiah said. “We will talk to other parties, farmers organisations and Dalit groups to plan protests against the BJP’s hidden agenda and anti-farmer policies,” he added.