Rafiq Nariyar is the new president of Jamiyyatul Falah Dammam Unit

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.

Madikeri, Mar 16: Three suspected cases of COVID-19, who returned from a foreign country recently have been admitted to the isolation ward of the district hospital here, the district administration said on Monday.

The samples of the suspected cases have been sent for lab tests and the reports are being awaited, sources said.

As many as 74 people have been placed under home quarantine in Kodagu (also known as Coorg) as a precautionary measure following their return from abroad, a press note from the Deputy Commissioner Annies Kanmani Joy said.

Bengaluru, Feb 18:  A fan of Kannada film star Darshan smashed the face of a police constable with a boulder when the latter asked him to come in the queue to a party to celebrate the star’s birthday.

The incident happened past midnight on February 15 near the residence of the film star where his birthday was being celebrated.

The injured police constable has been identified as Devaraj, attached to the Jnana Bharathi police station.

The film star’s managers had not made arrangements to handle a huge crowd that gathered near his residence and police had a tough time controlling the crowd.

Constable Devaraj was deputed to duty at the party and tried to get the crowd to fall in line.

As the police carried out a mild lathi-charge to control the crowd, a fan of Darshan came up with a boulder in his hand and smashed the face of the constable Devaraj from very close distance. The constable collapsed on the spot and the attacker ran away.

The impact was such that Devaraj’s nose was fractured and he sustained an eye injury. He was admitted to a private hospital and his condition is said to be serious.

The R R Nagar police have registered a case under IPC sections 353 and 352. The cops have launched a hunt for the accused and they are obtaining CCTV footage from the spot.

A complaint is being registered against the organisers of the event and an investigation is on. Several neighbours of Darshan have also complained to the police about the chaos on February 15.