No ‘love jihad’ angle in Rajasthan killing; Sick people disturbing peace: BJP’s 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.”

Bengaluru, April 3: Karnataka Chief Minister BS Yediyurappa on Friday held a meeting with Muslim leaders and legislators, seeking their cooperation in containing COVID-19.

In a press statement, the Chief Minister BS Yediyurappa said that the Muslim leaders have agreed to give details of persons who visited Tablighi Markaz in Nijamuddin and has also assured that they will convince the attendees to undergo tests for coronavirus and also follow quarantine rules.

CM Yediyurappa also informed media that the Muslim leaders are also advising the members of their community to offer prayers at home and also to stay indoors to maintain social distancing during "azan".

Also, an appeal has been made to the Muslim community to cooperate with the health workers during the treatment.

The Karnataka Chief Minister also appealed the masses not to pay heed to any sort of rumours pertaning to COVID-19. "Let all of us strictly follow precautionary measures and win the battle over caronavirus."

Bengaluru, Apr 18: Karnataka Health Minister B Sriramulu drew flak from his own party the BJP as well as the Congress for allegedly letting hundreds of people throng the Rupangudi Road in Ballari to collect food packets from him.

Visuals showed that the people came in hordes and fell on each other to collect the packets Sriramulu was distributing to the poor and needy as relief measure in the wake of lockdown.

The videos showed the minister standing with his team by the roadside and spreading out tables all along to distribute the food kit to the poor people.

Those in the queue had elderly people too.

A majority of people who rushed to grab the food packets did not bother to protect themselves with a mask.

"Whoever has done he has committed a blunder whether it is Sriramulu in Ballari or Anand Singh in Hospet.

All these elected representatives want to show that they are serviing the people in their constitutuency," said Karnataka BJP spokesperson Go Madhusudana.

Flaying the leaders of all political parties for defying norms, Madhusudana sad this has become fashionable for the leaders to perform 'cheap shows'.

He advised Sriramulu that it should have been done with door-to-door delivery of food packets instead of arranging it at the public place.

Congress spokesperson K E Radhakrishna said a case should be registered for defying regulations.

"I am all appreciation for Prime Minister Narendra Modi and Karnataka chief minister B S Yediyurappa who were the first to wake up and do something good for the people.

Now I feel sorry for them.

I wonder why they cannot control their own partymen.

People should file FIR against him (Sriramulu)," Congress spokesperson Prof K E Radhakrishna said

Slamming the alleged VVIP culture in the country, Radhakrishna said when the nation is facing a crisis, lavish marriages and grand birthday parties were organised. In the midst of all this health minister organises a food distribution mela, he added.

Attempts to reach the minister went in vain.

However, speaking to reporters at Ballari, Sriramulu admitted that the cases suddenly shot up in the state because of disregard to social distancing.

"People's support to lockdown is essential.

People have to maintain social distancing, without which we cannot control it," the minister said.