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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.

Bengaluru, Jul 16: Former Karnataka Chief Minister Siddaramaiah on Thursday hit out at state Health Minister B Sriramulu for stating that "only God can save Karnataka" from COVID-19 and asked him to resign from his post.

Speaking to media here in Bengaluru, Siddaramaiah said, "The government cannot say that we are helpless. Why is the government in power? You have power and you have money. It is your primary duty to serve the citizens of the state."

On being asked about Karnataka Health Minister's statement, the Congress leader said: "Let him resign and go out. God will help you only if you will put all your efforts."

Meanwhile, President of the Karnataka Pradesh Congress Committee DK Shivakumar tweeted "Karnataka's Health Minister saying 'Only God can save Karnataka' reflects poorly on @BSYBJP govt's ability to handle the Covid crisis. Why do we need such a government if they cannot tackle the pandemic?"

Sriramulu had said on Wednesday that either people should inculcate awareness or only God can save them from COVID-19.

"Who can save us at this time? It's either God or people should inculcate awareness in them. Congress leaders are involved in political mudslinging at this time. This is not fine and it will not help them in any way," the Minister had said.

"It is a crucial time, in the interest of the general public. I request all the Congress leaders not to indulge in loose talk regarding the issue, it leads to more panic situation among the general public. We are ready to adhere to any punishment if we did any wrong thing," he had added.

Bengaluru, Apr 25: Karnataka Health Minister B Sriramulu on Saturday initiated Phase I clinical trials to use plasma therapy for COVID-19 patients at city-based BMC Victoria Hospital.

Sriramulu was accompanied by Medical Education Minister Dr K Sudhakar.

"Karnataka has taken a lead role as we initiate Phase I clinical trials to use Convalescent Plasma Therapy for severe COVID-19 infected patients. BMC Victoria hospital took the first step today. We are determined to vanquish this enemy of mankind," Sriramulu said in a tweet.

"I wish our team of doctors at BMC Victoria hospital and team led by Dr US Vishal Rao a great success. This will be a torchbearer in our fight against Corona," he said in another tweet.

According to the Ministry of Health and Family Welfare, the state has so far reported 474 confirmed cases of COVID-19 which include 152 discharged or cured patients and 18 deaths.