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Abu Dhabi, Feb 17: NMC Health Plc, a hospital operator targeted by short-seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid investor concern he faced a margin call and misrepresented his stake.

The board asked for Co-Chairman Shetty’s resignation and it takes effect immediately, according to a person with knowledge of the situation. NMC has lost four board members since Friday, including Vice Chairman Khaleefa Butti, whose holdings are also being probed. The stock, the worst performer on the FTSE-100 Index this year, fell as much as 9.2 percent Monday morning and then rebounded.

“The resignation of senior board members should be viewed positively,” said Abdulla Nahlawi, an analyst at Rasmala Investment Bank in Dubai. “The credibility of the current board has been jeopardized with the unfolding of the recent events.”

NMC shares lost almost half their value the first week of February on speculation the company’s main investors faced a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million of those shares as “enforcement of security,” NMC said.

NMC operates the largest medical network in the United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. The shares started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.

Shetty, 77, was born in India and founded NMC in the 1970s after moving to Abu Dhabi. His spokesman said a legal review of the situation is ongoing and declined further comment.

Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq also stepped down because they were appointees of Shetty and Butti, NMC said, adding that they had no knowledge of the share transfers.

Questions remain over the role of Shetty’s family at the company. His wife and son-in-law both hold roles in senior management.

Almost 10 per cent of NMC’s freely traded shares are shorted, according to Markit Securities data. In mid-December about a third of them were.

Last week GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for NMC. Under U.K. takeover rules, it has until March 9 to make a bid.

NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review. The review is due to be completed before the company issues its financial results in March, the person said.

NMC said Mark Tompkins will continue as the company’s sole chairman.

Bengaluru, Jul 17: Karnataka Medical Education Minister K Sudhakar held a meeting through video conference on Thursday with private and government establishments involved in testing and treatment of COVID-19 in the state.

A total of 51,422 cases including 19,729 recoveries and 1,032 deaths were reported in the state till yesterday.

On the same day, K Sudhakar also paid a surprise visit to the Bengaluru's CV Raman Hospital and urged the administration to follow COVID-19 guidelines properly. He also took stock of the hospital's preparedness to fight the deadly virus.

"Surprise visits will continue. I will be in touch with every lab and get the right number of tests done on a daily basis," the minister said while speaking to the media.

He also urged the people who have recovered from coronavirus to donate their plasma to save other lives, adding that donors will receive a reward of Rs 5,000 as a token of appreciation.

Bengaluru, May 19: Chief Minister B S Yediyurappa-led Karnataka government has recommended the withdrawal of 46 cases against leaders belonging to Sangh Parivar who had apparently involved in violence during the birth anniversary celebration of Tipu Sultan in the state. 

These cases – ranging from very serious forms of assaults on Muslims to unlawful assembly – were registered across Karnataka between 2014 and 2018.

Among the cases recommended to be withdrawn include those registered against senior state BJP leader Sanjay Patil, VHP leader Swaroop Kalkundri, and several district level Bajrang Dal activists. 

The government recommended withdrawal of these cases under Section 321 of the Code of Criminal Procedure on March 5. 

The recommendations, however, have been opposed by three crucial law enforcement departments – Director General and Inspector General of Police (DG & IGP), Director-Department of prosecution and Government litigation and Law department. 

While the DG & IGP has opined that these cases “cannot be withdrawn”, both the department of prosecution and law have observed that these are “not a fit case to withdraw”.