Northernsky City – An Oasis for Dreamers

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.”

Mangaluru, Jan 15: Thousands of people on Wednesday boarded boats from Ullal's Kotepura to join a massive protest against the amended Citizenship Act and National Register of Citizens (NRC) in Adyar here.

People travelling through boats and steamers decorated with national flags, raised slogans during their journey through the Netravathi River.

The innovative mode of transportation was used by the protestors to reach the venue, as it not only saved time but was also more convenient for the fishermen, as large number of people from this community joined the protest.

The protestors docked their boats at the shore, which was barely 500 metres from the site of protest, being held at Shah Ground in Adyar.

The distance between Kotepura to the Shah Ground is approximately 15 kilometres but protesters would have to walk more five kilometres to reach the venue because of heavy traffic.

Due to protest, the national highway was also blocked and resulted in huge traffic snarls on routes leading to agitation site. 

Bengaluru, Jul 9: The total number of Covid-19 infections in Karnataka on Thursday breached the 30,000 mark as the state reported its biggest single-day spike of over 2,200 new cases and 17 related fatalities, taking the death toll to 486, the Health department said.

The day also saw a record 957 patients getting discharged after recovery, out of which 606 were from Bengaluru Urban.

Out of the 2,228 fresh cases reported on Thursday, a whopping 1,373 were from Bengaluru Urban alone.

The previous biggest single-day spike was recorded on July 8 with 2,062 cases.

As of July 9 evening, cumulatively 31,105 Covid-19 positive cases have been confirmed in the state, which includes 486 deaths and 12,833 discharges, the Health department said in its bulletin.

It said, out of 17,782 active cases, 17,325 patients are in isolation at designated hospitals and are stable, while 457 are in ICU.

"Death rate in Karnataka is 1.49 percent, while in Bengaluru is 1.28 percent, and our target is to bring it below 1 percent," Medical Education Minister K Sudhakar told reporters.

"The reason for spike in cases in Bengaluru and other places in recent days is because during the last four months of lockdown we had controlled it very well, but as we relaxed lockdown for economic activities we did not follow certain precautionary measures like distance among other things," he said.

The Minister also conceded that there were lapses on part of the government also in terms of tracing and tracking.

"It has to be improved especially in Bengaluru and we are taking steps in this regard."

Among the 17 dead seven were from Dharwad, two each from Hassan, Kalaburagi, Mysuru, and one each from Raichur, Uttara Kannada, Tumakuru and Davangere.

The deceased include 13 men and 4 women.

The dead are all either with a history of Severe Acute Respiratory Infection (SARI) or Influenza-like illness (ILI).

Out of 2,228 fresh cases today, contacts of the majority of the cases are still under tracing.

Among the districts where the new cases were reported, Bengaluru Urban accounted for 1,373, followed by Dakshina Kannada (167), Kalaburagi (85) and Dharwad (75).

Bengaluru urban district tops the list of positive cases, with a total of 13,882 infections, followed by Kalaburagi (1,901) and Dakshina Kannada 1,701.

Among discharges Bengaluru urban tops the list with total 2,834, followed by Kalabuagi (1,392) and Udupi (1,206).

A total of 7,79,209 samples were tested so far, out of which 20,028 were tested on Thursday alone.

So far 7,28,887 samples have been reported as negative, and of them 17,568 were reported negative today.