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.”
Shrikanth (40), son of Itappa Moolya and resident of Kavoor, near Shanti Nagara Ground, Mangaluru, is said to be a close associate of Yuva Brigade (erstwhile Namo Brigade) leader Naresh Shenoy.
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The hearing that never took place!
When case no.TP/1086/12-13 Eh was called at the office of the commissioner of the Mangalore city corporation on the 24th of March there was no response from either of the parties! That was because the complainant Sri Vinayak P.Baliga was absent as he had been sent out of the world- he had been brutally murdered in front of his house allegedly by hired killers on the 21st of March at around 6 am. The respondents were Dakshina Kannada Dravida Brahmins association, Sharada School and Tulunadu Trust who also did not choose to turn up. The allegations were that they have put up buildings on TS no.340 without proper license and have started using them without occupancy certificate by the corporation authorities. It was also alleged that the buildings are not being used for the purpose for which they were constructed and there were also violations and deviations from the plans which had been approved by the corporation. He had also stated that the narrow road was blocked due to parking of the vehicles waiting to pick up children from the school and problems were being caused in the residential locality due to these commercial activities.
To support his contention he had also submitted a communication from the commissioner of Mangalore city corporation no.e428:cr72:12-13 which had categorically stated that the buildings under survey no TS 340(part) under RS no.501, Kodiyalbail village had been granted permission to build as follows:
cellar- nil
ground floor-323.52 sq meters
1st floor 323.52 sq meters
2nd floor 323.52 sq meters
total 970.56 sq meters.
But on spot inspection it was found that the built up was as follows:
Cellar ---------323.52
Ground floor- 342.92
1st floor ---do---
2nd floor ---do---
3rd floor ---do---
4th floor ----do—(with acc sheet roof)
Total-----2015.04 sq meters.
So, it was not a minor violation but a build up space of more than twice the licensed area! The commissioner had also issued notice under section 308(1) of the Karnataka Municipal corporations act and had warned that unless the deviations were rectified within seven days of the date of the notice(which was dated 19-11-2012) it would be demolished at the cost of owners and the amount collected from them. They had also asked the respodents to submit the plans of the newly constructed building within seven days of the date of the notice! The fact is that it is 2016 and the building still exists and going strong! The road is still narrow and gets blocked. The residents till suffer and the Mangalore City corporation is in deep slumber. Perhaps that is a sign of ‘smartness’ for a city which aims to get the smart city tag!
With the complaint having become infructuous the violators can be happy for some more time! But, a group of citizens are planning to re submit the complaint or get impleaded into the case. But as a senior lawyer remarked such complaints are not civil cases and do not become extinct if the complainant is eliminated. We are waiting to see what action the commissioner will take on the issue which still exists. We are waiting for the demolition to start!
caption:
the photos show the narrow approach roads to the institutions.
another photo shows the old ailing parents of Vinayak Baliga.
The photos of the institutions occupying the buildings scheduled to be demolished.
Killing of the RTI Activist...... Silencing the Silent
It was well Planed Murder Plot, It was the start of the week and Mr. Vinyaka Baliga who was always punctual with his time got up dressed to go the temple, after which he had promised to take his aged father to have coffee at Hotel Taj Mahal, But as fate had it way at 5:30 am on Monday, 21st March 2016, Mr. Vinyaka Baliga was hacked to death by two helmet worn motorcyclist right in front of his house. This Cold blooded murder was not only designed to kill him but also to silence the RTI activity of the city by creating fear in their hearts. Many have strongly condemns such cowardly act by individuals. The Police department has taken all required measures in the interest of justice and has achieved initial success in arresting the few culprits.
Many individuals who share a concern for the welfare of the society visited Mr. Baliga’s house to pay homage to the departed soul. They were informed by the family members that Mr. Baliga has put lot of RTI against Electrical dept, Illegal buildings in the city and irregularities in temple administration. He was self made man and always fought for the right of people. He was very helpful towards others and has always spoken out against injustices. He had always kept his appointments update in a dairy, Whatever he did he never shared it with his family and they never knew what he was doing other than that they found neatly bundled paper which taken by the police and is under investigation.
There are many such Baliga’s doing their work silently and systematically, many a time not getting associated to any group or political party. These silent RTI activists are a threat to all those corrupt persons who use all unfair means to meet their objectives. These silent RTI activists become a very soft target for the corrupt persons who use all their might including the murder to silence them. Mr. Baliga is a standing example of the atrocities of these corrupt mafia, who have found loopholes in the system to scoop out revenue for themselves and their corrupt political partners. Nowadays even RTI reply is getting diluted there are high chance that you may get a wrong answer from a wrong department or an answer given that it is not found, or not within our jurisdiction
Corruption is now not in the system, but has “become the system”, everyone know that when you buy a land or flat, no one registers the same for 100% valuation, but anywhere between 30-60%.and this rule applies for law makers also, you cannot get a govt. Job without paying few lakhs, nowadays even transfer and promotion means you need to shell out some lakhs. So everyone is getting used to this system , when RTI activists ask questions on this kind of corruption, it angers them as how can anyone question this system and hence it is better to eliminate source so that the system is not disturbed
Now the recent govt move to have ACB so that Lokayutha will not only be toothless, but also without any claws to even scratch the corrupt, this fully fool proof system should be considered as the feather in the cap for our present government to protect the corrupt, so that the corrupt can at least sleep without the fear of being caught.
RTI activist are not born from fear, they fight for the cause of the public, to see that system is changed for our next generation. This move by the government looks like that their dream will take a longer time to be released but hope in heart will always fly high and that one day India will be free from these corrupt.
It is not easy to silences these silent RTI activists as public understand their strength and hence they standby with them. RTI activists are targeted for their commitment to bring about the changes. But by working as individuals they have become easy targets. Therefore, it is time for all RTI activists to join hands and become stronger. If a corrupt mafia can join hands for their very survival, why not the RTI activists stand united and thus become mightier than the corrupt system.
If you are an RTI activist it is time to join hands together and we request all RTI activists in DK to come together as one team, contact or SMS this mobile no. 9449058411 to move forward.
Article by: Rohan Shiri
Editor: Rajendar Kumar
RTI- Activists
Case taking another direction, anyways my humble request to the police department is find the accuse and punish them lawfully.
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