Pejawar seer in ICU after surgery; Muslims offer prayers for his health

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.

Bengaluru, Jun 22: Senior Congress leader BK Hariprasad and BJP’s MTB Nagaraj, one of the defectors who helped the saffron party come to power in Karnataka, were unanimously elected to the Legislative Council along with five others on Monday. 

All seven were declared as “duly elected” by Legislative Assembly Secretary MK Vishalakshi, the returning officer for the biennial election to the Legislative Council. 

Hariprasad and Naseer Ahmed of the Congress, Nagaraj, R Shankar, Prathap Simha Nayak and Sunil Vallyapur of the BJP and Govinda Raju of the JD(S) are now MLCs. 

While Ahmed was an incumbent who will get another term, the six others will replace Jayamma, MC Venugopal, NS Bore Raju, HM Revanna and TA Sharavana and DU Mallikarjuna whose term ends June 30. 

While an election was scheduled June 29, it was not necessary as only seven candidates were in the fray for the seven seats on Monday, which was the last date for withdrawal of nominations. The nominations of A Yadavanahalli PC Krishnegowda and Mandikkal Nagaraja were rejected. 

With their rejection as MLCs, Nagaraj and Shankar - who jumped ship to the BJP last year - will now look to become ministers in Chief Minister BS Yediyurappa’s Cabinet. Both Nagaraj and Shankar were ministers when they resigned and defected from the Congress-JD(S) coalition. While Nagaraj lost the December 2019 bypolls, Shankar did not contest. 

Nagaraj, Shankar and Vallyapure were Yediyurappa’s picks for the Council, whereas Nayak is said to have been backed by BJP state president Nalin Kumar Kateel. 

There were many aspirants in the Congress for the Council berths, but Hariprasad and Ahmed were picked, given their experience. Hariprasad is widely believed to counter Siddaramaiah, who leads the party in the Assembly. 

Raju of the JD(S) runs a poultry business in Kolar and the choice of a fresh face is seen as the party leadership steering clear of any trouble as there were many asking for the ticket. 

Thiruvananthapuram, Feb 6: The 105-year-old Bageerathi Amma who scripted history when she appeared for her fourth standard exam in last November becoming the oldest learner of the Kerala State Literacy Mission has passed her exam with 74.5 per cent marks.

This grandmother from Parakulam in Kollam district of Kerala Bageerathi Amma has six children and 16 grandchildren.

Speaking to news agency ANI, CK Pradeep Kumar, district co-ordinator of State Literary Mission said on Wednesday, "Bageerathi Amma has passed her exam with 74.5 per cent marks. It is really an inspiration for others to follow her and continue their education," he said.

Ms Bageerathi had to stop her education at the age of nine when she was in Class 3 as she had to take care of her younger siblings.

Her yearning to continue her studies was fulfilled with the help of officials of the Literary Mission who helped her to realize her dreams. She scored 205 marks out of a total of 275 in the fourth standard equivalency examination.

The Kerala State Literacy Mission Authority is an autonomous institution under the General Education Department, Government of Kerala.

The programme aims to develop literacy skills through continuing education, provide chances of each and everyone interested in learning, enable the learners to make use of their learning in their daily life and ensure Secondary-level education to the whole of Kerala.

The main beneficiaries of this programme are illiterates, neo-literates, school drop-outs and those interested in lifelong education.