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.
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If Mr.Bhat arrested then it will be in Guinnus Book of records!! Congress Government have no guts to do it!! Mr. Bhat a well known figure in creating communal tension involving directly / indirectly in various types of crimes in our district since 35 years!!! but no Government so far not even able to file an FIR against him!! This is very sad news for peace loving people of this district. In this case also CID is helpless.
Do anybody have the guts to touch this chaddi? Hope atleast this time.
Put him behind the bars. Law is equal to all.
No one can touch bhat, even congRSS goverment cannot touch him because all are wearing his chaddi.
Not god call father or baap, shame on you yaar study history of that rowdy bhat, do you know he is barking about cow but he is selling cow from your mother land sulliya asram,
Arrest this insect of mangalore Before he spread the virus
he will get punishment for his mistake,. but why people are so much interested in his life,
Prabhakar Bhat is Like Poojary, No hold for tongue. creating non sense in the society
kalladka bhat dont have any work to go behind this rape case?
Manohar! This is the problem with you guys.. If he says one word against Minorities then he is god for you.. grow up buddy! Before making him god try to understand what type of god he is? Good or bad!
No guts to congress arrest bhat, its 100% sure.. this congress only cheating minoties name of bhat and RSS. they are also blindly supporting Congress.. Above 70% of congress leaders touched with RSS. then how they are arrest
This person actually divides the community with his poisonous speech causing hatred among people.
It is individuals choice how he/she wants to live.
How can he impose Hindutwa on others who has his own principles.
There is a limit for toleration and patience, one day when the limit exceeds, then automatically faces the consequence.
If the law can not protect, then it needs to protect the law and do the justice to all.
Manohar ,
There are many faces who are sheep in front & Fox from behind.. Which u guys are unable to recognize... Go and ask with the Victim. If u personally did not met them. then Dont judge and give certificate of Honesty... A honest person will never give hate speeches..
Now behind Harish Murder ???? who sponsored ??? who is giving bike , car, money and legal protection to Bhajrang dal Boys???
If brain map Mr. Bhat ..... all these stories will come out.
He is the paid goonda from RSS. Its the closing time of bhatta.
Manohar, Bhatta is a stray animal......
will congi govt show guts to teach him lesson? i dont think so bcz most congi leaders are in touch with him
Guilty Must be Punished.
Such dual personality person cant fool people for long
Bhat bajrangi clean bowled....jail term not less then 10 years.....all the best....
The Great RSS!!!!
sabko pap yek din bugathna hoga.
Put him in jail forever, he s one and only person who creates communal dispute in the society.
THU THO GAYA BHAT ISS BAAR...
Must be a trap by congress, Kalladka Bhat is a prominent personality. goons are trying to defame some innocents
Great Personality of Tulu Nadu, This s the Fake news, he s like god to us, he cant make this .
Bhat is a murderer, This type of goons must be sent to pakistan.
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