Mangaluru: UTK inaugurates Ahmed Anwar's photo exhibition on Street Life

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.

Mangaluru, Apr 22: Iftar parties, Taraweeh and weekly Friday prayers in mosques have been banned in the district during Ramadan amid Coronavirus theat, Dakshina Kannada Deputy Commissioner Sindhu B Rupesh said here on Wednesday.

In a release issued here, she said, “As per the guidelines issued by the State government and Wakf Board, arranging Iftar gathering, and offering Taraveeh Namaz and Friday Namaz at mosques or dargas during the month of Ramadan has been prohibited as a precaution measure to prevent the spread of coronavirus. Therefore, offer prayers at homes instead of going to mosques," the DC said.

“No one can perform Namaz in the mosques except the muezzin and the Pesh imam and the staff of the mosque. Also, gathering neighbors and offering collective prayers at anybody's home is also not allowed. Masjid administration committees must follow the directives of the government, Wakf Board and the District Administration”, the DC urged.

Bengaluru, Jan 22: The suspected man in planting of a live bomb at the Mangaluru International Airport surrendered before the DG and IG of Karnataka Police, Neelamani Raju, here on Wednesday, police sources said.

The accused was identified as Aditya Rao, a resident of Udupi.

The accused was taken for questioning by the Halasurugate Police, where he was being interrogated intensively, the sources further said.

According to them, he confessed that he planted an explosive device at Mangaluru Airport on Monday said that it was an act of revenge for denying him an employment by the Kempegowda International Airport Limited (KIAL).

He was arrested by the Bengaluru police in the past for making a hoax call to the police stating that a bomb had been planted at the Bengaluru Airport.

Karnataka Home minister Basavaraj Bommai told the media that 'the Bengaluru police have taken the custody of Aditya Rao, who is being subjected for a thorough interrogation'.

The Mangaluru police was also likely to join the Bengaluru police into the investigation, the sources added.

Also Read: Udupi’s Aditya Rao arrested for issuing bomb threats to Airport, railway station