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.
Comments
Islam is not a religion to add membership to show the population.
It is a true religion to practice guidelines of only one creator Allah (S.B.T). Accepting and quitting Islam will not make any difference for true Muslims. One who understands his creator will not reject his religion even if he dies because his life starts after death which is unlimited. The life in earth is so short that we can compare to hotel stay for a day.
Rejecting Islam means he is rejecting his creator Al Mighty Allah and it doesn’t mean he is quitting from Islam
Islam is the second largest religion in the world only in Qty. where is true Muslim? very few in qty
Accepting Islam doesn’t mean becoming membership in Islam. It is accepting his creator and his guidelines to practice successful and peaceful life and thereby prepare for his permanent life which starts after his death.
For true Muslims there is no fear to die. because he is always prepared and waiting for his death
May Almighty Allah guide us True path and success.
This is really unfortunate. He has chnged in religion only to get the verdict in his favor. Suppose he wont get it, will he convert to Christianity or Budhism or Sikhism? Will the media give same preference in case he would have changed to religion other than Hinduism or if any Hindu converted to another religion. This issue is now on the top agenda of Media and they are publishing it by applying ghee + butter. None knows truth behind it. However this family will not succeed in this world and the life after death if they convert to other religion though none can force them to change the religion. Islam or Muslims will not lose anything if this family converts to another religion. But this family will lose and they will realise it sooner or later. Let us pray God to keep them on right path and not on the path of Sathan.
he would have converted to christinaty so he can get international help from devil DOnald trump or vatican pope, lol religion is your choice, but the main point here the god look at is your heart, how you treat mankind & how you obey GOD command, how to spend you money & how you live..people who worship idol will be throwen to hell forever there is no excuse and the punishment is very severe, if your an eithest there will be a change & it depend on GOD & also how you lived in earth.
The religion is set of law decreed by the CREATOR/ ONE AND ONLY GOD.
It guides from birth till death and showing how to be also succesful in the life after the death.
This is not how we think just to suite the temporary needs.
Before accepting or rejecting any religion, he should have thorough idea of its teachings.
Unless it is known, believed in it and practiced, we can not call him the follower of Hinduism OR ISLAM, OR Christianity OR whatever.
Like changing for personal temporary gains, has no meaning and not required they can live like aninals which have no religions.
The animals follow and do whatever easy for them.
God give wisdom to all
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