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.”
The PIL, filed by seven Uttar Pradesh residents, has sought the court's direction to ensure that no animal is killed during the festival, called the feast of sacrifice, which is to be celebrated early next week.
Comments
they train how to slit the throat for their kids .. no wonder ISIS militrants love throat slitting and beheading ...they rejoice the kill ... it must be banned ...countries throat slitting activities are terrorism , rapes , smugling , hawala , robbing and thefts .. needless to say who are in large no ... hahaha ... so it is the effect of this ..makla justification nodri .. upper part na slice maadi pain agda haage koltaranthe ...adu dodda rocket science nanmaklige ...haha.. 150 crores iddu ondu nobel tegello yogyathe illa ...science bagge maatu .. hogree hogree fish sales madi hogi ... delivery time aithu :)
Halal best method.
Even yogesh also certified that halal is best way. In halal method. Animals and plants doesnt feel pain.
@yogesh
Well said, that's why we say that halal method either veg or animal, is the best method. because of the speed both doesn't feel pain at all.
at last u agree Halal is the best Method. When u accidentally cut ur finger, u wont
in halal method animals don't feel pain. what about fish, which die very painfully.
stop eating fish also. fish is also vishnu's avatar, which is more holier than cow.
muslims don't eat pig, because it is dirty and filthy, carries lots of diseases
hindus don't eat cow. why. is it dirty and filthy too.
in halal method, animals feel zero pain, proved by science. it is also proved that halal food is more tastier than non halal. and there is no blood in the meat in halal method, even science says halal is the best method. even non-muslims in western countries wants halal chicken, just check the restaurant in usa name is halal guys restaurant. people stand in queue, most of them are non-muslims. next to the restaurant there is one more restaurant, which is non-halal. which is fully empty
Do animals have rights?
The vegetarian argument is that killing animals for the benefit of humans is cruel and an infringement of their rights. They put both on the same level without conceding any superiority to humans over animals. This argument is seriously flawed, because if animals had rights comparable to those of humans, they must also have equivalent duties. In other words, we must be able to blame them and punish them if they violate the rights of others. It is absurd that it should be considered a crime for humans to kill a sheep, but natural for a lion to do so. The problem stems from a misconception of the role of human life within the animal kingdom: a denial of purposeful creation within a clearly defined hierarchy degrades humans to the level of any other creature. Yet even then, the argument is illogical: Why should plants, for example, be denied the same protection from a violation of the sanctity of their life?
Is Islamic slaughter cruel?
The question of how an animal should be slaughtered to avoid cruelty is a different one. It is true that when the blood flows from the throat of an animal it looks violent, but just because meat is now bought neatly and hygienically packaged on supermarket shelves does not mean the animal didn’t have to die? Non-Islamic slaughter methods dictate that the animal should be rendered unconscious before slaughter. This is usually achieved by stunning or electrocution. Is it less painful to shoot a bolt into a sheep’s brain or to ring a chicken’s neck than to slit its throat? To watch the procedure does not objectively tell us what the animal feels.
The scientific facts
A team at the university of Hannover in Germany examined these claims through the use of EEG and ECG records during slaughter. Several electrodes were surgically implanted at various points of the skull of all the animals used in the experiment and they were then allowed to recover for several weeks. Some of the animals were subsequently slaughtered the halal way by making a swift, deep incision with a sharp knife on the neck, cutting the jugular veins and carotid arteries of both sides together with the trachea and esophagus but leaving the spinal cord intact. The remainder were stunned before slaughter using a captive bolt pistol method as is customary in Western slaughterhouses. The EEG and ECG recordings allowed to monitor the condition of the brain and heart throughout.
The Halal method
With the halal method of slaughter, there was not change in the EEG graph for the first three seconds after the incision was made, indicating that the animal did not feel any pain from the cut itself. This is not surprising. Often, if we cut ourselves with a sharp implement, we do not notice until some time later. The following three seconds were characterized by a condition of deep sleep-like unconsciousness brought about by the draining of large quantities of blood from the body. Thereafter the EEG recorded a zero reading, indicating no pain at all, yet at that time the heart was still beating and the body convulsing vigorously as a reflex reaction of the spinal cord. It is this phase which is most unpleasant to onlookers who are falsely convinced that the animal suffers whilst its brain does actually no longer record any sensual messages.
The Western method
Using the Western method, the animals were apparently unconscious after stunning, and this method of dispatch would appear to be much more peaceful for the onlooker. However, the EEG readings indicated severe pain immediately after stunning. Whereas in the first example, the animal ceases to feel pain due to the brain starvation of blood and oxygen – a brain death, to put it in laymen’s terms – the second example first causes a stoppage of the heart whilst the animal still feels pain. However, there are no unsightly convulsions, which not only means that there is more blood retention in the meat, but also that this method lends itself much more conveniently to the efficiency demands of modern mass slaughter procedures. It is so much easier to dispatch an animal on the conveyor belt, if it does not move.
Yogesh, Lol, you explained halal veg in best way... anyone can understand now.. all doubts cleared.
after sacrifice animal we are not throwing meat and not keeping meat to eat ghost. we share all the meat to poor people and our family.we are not wasting the meat. if you care that much about animal you should ban eating non veg (chicken mutton)
I am surprised to see why they dont file PIL from banning export of beef meat. Very strange. Why they are maintaining double standard.
Government can allow Indian cow meat for foreigners to eat....this is very bad and disgusting policy....
On Eid day he feels \Cruel\" other days ?
What about vegetables right? even number of studies prove that plants feel pain. Can people stop using plant and vegetable ?
Court should have right to panish if some one file the IPL which does not make any sence and causing unnessary focus, contradict the constituional rights and waste of court time etc.,"
We Muslims sacrifice animals once in a year.But our Hindu brother's sacrifices animals every now and then in the name of Balidhan.We Muslims are not bothered about the PIL.Bec we blindly believe in Almighty Allah.
You have to file PIL against killing of HUmans first
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