Muslim women likely to go to Hajj without Mahram: Naqvi

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.”

Kasaragod, Mar 28: A pregnant Bihari migrant woman in labour gave birth in an ambulance after the Karnataka police allegedly refused to allow the ambulance carrying her to cross the border road to Mangaluru to reach her hospital.

The border road was shut due to the lockdown. The woman used to consult a doctor in Mangaluru across the border.

As Karnataka police stopped the vehicle at the border in Talapady, saying no vehicle, including ambulances from Kerala, could be permitted to their state, the drivers decided to take the woman was taken to the general hospital here, but she went into labour and delivered a baby girl in the vehicle

Both the mother and baby are doing fine, authorities said.

Hailing from Patna in Bihar, 25-year-old Gowri Devi and her husband were working in a local plywood factory in this north Kerala district, from where the maximum number of coronavirus cases have been reported so far in the state.

Those living in the border towns and villages of Kasaragod are dependent on the hospitals in Mangaluru as it is nearer, local people said.

The ambulance drivers- Aslam and Musthafa- said they stopped the vehicle by the wayside, making it safe for the woman. The baby girl and the mother were soon shifted to the government general hospital here and both of them are safe and healthy, they said.

Local people complained that not only pregnant women, but even patients requiring daily dialysis and emergency cardiac and cancer treatment were being sent back by Karnataka.

Bengaluru, Jul 16: Former Prime Minister and JDS supremo H D Devegowda on Thursday gave a clarion call to party workers to take steps to strengthen the party from the grossroots level and to 'expose the failures' and 'anti-people' policies of BJP government both at the Centre and State.

In an open letter to the workers here, he alleged that the urgent need is to create awareness among the people about failure of the governments which have brought in policies which are deterrent to the poor and downtrodden.

BJP government headed by Chief Minister B S Yediyurappa in Karnataka has come up with an amendment to the Land Reforms Act,1961, which is 'against' interests of the small and medium farmers as even a non-agriculturist can purchase agriculture land, thus giving an opportunity to the rich people to 'exploit' illiterate farmers and purchase their land and use it for some other purpose after some time.