Mangaluru: Cashew baron, industry doyen Gurpur Sadanand Prabhu dies at 93

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.

Tumakuru, Jan 2: Prime Minister Narendra Modi on Thursday slammed the Congress and its allies opposing the Citizenship Amendment Act, saying they are against giving relief to those who have been brutalised and victimised in Pakistan.

"Pakistan was founded on religious grounds due to which atrocities on minorities such as Hindus, Sikhs, Jains and Christians have increased. But Congress and its allies don't speak against Pakistan," he said at a function here.

He also said the Congress and its allies take out rallies and stage demonstrations against the efforts to prevent atrocities on religious lines and save women from sexual assaults.

Modi wondered why those opposed to the CAA were not speaking out against Pakistan's atrocities and asked what stopped them from doing so.

Strongly defending the CAA, he said it was adopted by Parliament in a historic move, but that the Congress and its allies and the ecosystem created by his party's rival were now against the very institution.

He said India cannot leave the Hindus, Christians and Sikhs apparently fleeing Pakistan to "their fate" and added it was the country's responsibility to protect them.

Modi pointed out that the efforts are especially to protect the Dalits and tribals in Pakistan.

The Prime Minister also pointed out that the abrogation of Article 370 was a step towards ending terrorism and uncertainty in Jammu and Kashmir.

Bengaluru, May 18: Karnataka Chief Minister BS Yediyurappa on Monday said that people from Gujarat, Maharashtra, Kerala and Tamil Nadu will not be allowed in the state till May 31.

"We have decided not to allow entry of people from Gujarat, Maharashtra, Kerala and Tamil Nadu till May 31," Yediyurappa said after a meeting with state ministers and senior government officers to discuss the guidelines issued by the Centre regarding the fourth phase of nationwide lockdown.

"State road transport corporation buses in Karnataka and private buses will run. Strict lockdown measures in containment zones and economic activities will be permitted in other areas. Sundays will be total lockdown across the state. Home quarantine will be strengthened," he added.

The Chief Minister further said that all shops will be allowed to open and all trains running within the state will be permitted.

The central government on Sunday extended the ongoing COVID-19 induced nationwide lockdown till May 31, but with a set of new relaxations commencing from Monday. The Union Home Ministry has also given powers to States/UTs demarcate areas in Green, Orange and Red zones, which will allow them to start activities except in containment zones.

According to the guidelines, "all other activities will be permitted except those which are specifically prohibited under these guidelines. However, in containment zones, only essential activities shall be allowed, as mentioned earlier."