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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.

Mangaluru, Mar 9: A person who arrived at the airport in Mangaluru from Dubai and was admitted to the isolation ward of a hospital with symptoms of coronavirus has gone missing, sources said.

The patient, who arrived on Sunday, was shifted to the district Wenlock hospital with a high fever and a few symptoms of coronavirus.

He reportedly argued with the hospital staff late in the night that he had not contracted the virus and left the hospital saying he will take treatment in a private hospital.

The hospital health officer called up the police and a high alert has been sounded in coastal districts to locate the person who has 'escaped' from the hospital.

Dakshina Kannada district health officer Sikandar Pasha had earlier said the patient will be kept under observation for 24 hours and will be discharged after routine tests.

The district health department on Monday lodged a complaint with the Mangaluru police station and investigation is on.

Bengaluru, Mar 15: The Karnataka government on Saturday said it would advice IT companies to allow employees to work from home as most coronavirus  affected patients or their relatives were from this sector.

"If anybody (IT companies) asks (employees to work in the office),I will speak to them through the deputy chief minister so that they take steps to issue a definite order. We have very clearly said, Stay Home, stay safe," medical education minister Dr K Sudhakar said. He recalled that the chief minister himself had issued a strict advisory to allow employees work from home.

The minister said the IT sector understands the gravity of the situation because they are educated, have travelled abroad and have more exposure to information world. "No action," he said to a question on what action would be taken against companies who do not follow the instructions.

"There is no action to be taken. We have not promulgated any law. It should be a kind of a cohesive approach from the government and the responsible citizen," he said.

The minister said he had also acted on the advice of Infosys Foundation chairperson Sudha Murty, who had told him that all areas where public and students gather, including malls, theatres, schools and colleges, should be closed.

Sudhakar claimed that the woman whose husband had tested positive for cornavirus here, had flown straight to Delhi from the city and had not come out of Bengaluru airport. He said the newly-wed couple came to Bengaluru airport on March 8 night and early on March 9, she flew alone to Delhi. From there she travelled to Agra by train. She did not come out of the airport, said the minister.

To a question on legal action being contemplated against her, the minister said he would take a call said he was not thinking of legal action at present and would take a call only after the woman, who has also tested positive for the virus, comes out of isolation. He insisted that the purpose of getting details was not to scare people.

On the preparedness in Kalaburagi, where the first Coronavirus death in India was reported, he said the administration had 'clamped down" the entire district. Meanwhile, the deputy commissioner of Ballari district ordered cancellation of tourists' entry to the world heritage site of Hampi from March 15 to 22 to prevent further spread of the virus.