UAE court issues worldwide freezing order on BR Shetty’s assets

News Network
July 25, 2020

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.

Comments

UAE Muslim
 - 
Sunday, 26 Jul 2020

give money to RSS now to kill muslim....GOD will turn the table for moran like you BR,...shamed of tulu guy cheated the UAE govennment...not root in hell

ANONYMOUS
 - 
Saturday, 25 Jul 2020

amount should be 8 billion dollar and not 8 million dollar

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News Network
April 29,2020

Bengaluru, Apr 29: Indian women have always been the epitome of beauty, strength, and intelligence. Today, the success of Indian women across various walks of life has proven that they have earned this reputation.

One such dedicated social worker is Dr Sunitha Manjunath, the Founder of 'Sumanaa Foundation' of Sanjay Nagar in Bengaluru.

Sumanaa Foundation, based out of Sanjay Nagar in Bengaluru has been on the forefront to support people in distress due to COVID-19. 

The foundation under the leadership of its founder Dr Sunitha Manjunath procured a total of 20000 kgs of farm-fresh produce in four phases from farmers who are unable to sell it due to the COVID Lockdown and have distributed it across 6000 families across Bengaluru city.

"We have procured these vegetables after identifying farmers who are unable to sell their produce due to the challenges of lockdown.

This initiative not only supports the farmers by helping them get the right price for their produce, but also gives us an opportunity to get vegetables at a reasonable price by escaping all middlemen and commissions. We have identified 6000 poor families mainly around Bengaluru city who have not been able to earn their daily wages and given them coupons.

The foundation members identify genuine cases and give them coupons which can be redeemed in exchange of an essential vegetables kit," said Dr Sunitha Manjunath, the founder of Sumanaa Foundation.

These vegetables have been procured from Chikkaballapura, Doddaballapura, and surrounding villages and included vegetables like onions, tomatoes, capsicum, green chillies, beans, carrots, brinjal, potatoes, beetroots etc. These farmers got a fair price for their produce and were overjoyed to know that their harvest is being distributed free of cost to needy and deserving families.

Sumanaa Foundation has been actively supporting the city administration in fighting COVID-19 pandemic. In the recent weeks the foundation has distributed sanitisers and masks to BBMP Pourakarmikas.

The foundation also cooked food for over 400 people each day. This food was handed over to the city administration, which further distributed this to the police department and other staff working across government departments during these testing times.

Dr Sunitha, an engineer by qualification, had enjoyed a high-flying corporate career with BOSCH. She was offered a global role, which she turned down to setup her NGO, 'Sumanaa Foundation' and to serve the needy in and around her locality. Over the past seven years, the NGO with 70 members has done a wide range of activities to support the poor and needy in Bengaluru.

The core team of Sumanaa Foundation works under the leadership of its president Dr Sunitha Manjunath and includes young and energetic individuals like Manjunath K, Prakash K, Vidya Prakash, Sindu Gowda, Byregowda, Nishita Arjun, Arjun Varadaraj and Manoj Kumar
'Meal of Humanity' is a notable initiative of Dr Sunitha Manjunath and her team. Under this program, over 300 poor people are served mid-day meals every day. 

This is currently a self-sustained program with no external funding. Dr Sunitha Manjunath, her family members, and friends contribute their hard-earned money to bring smiles to hundreds of migrant workers and daily wage laborers.

'Wall of Humanity' is another unique concept implemented by Sumanaa Foundation. People can leave used or unnecessary daily use products like clothes, toys, groceries, etc at a designated area. This can be picked by anyone in need of these items. This self-helping model has touched the lives of hundreds of people in and around the area of Sanjay Nagar.

Regular blood donation camps, eye checkups, scholarship for students, tailoring machine distribution, environmental initiatives, Swacch Bharath programs, wall painting across the roadside are just a few among the hundreds of activities undertaken by Sumanaa Foundation regularly under the leadership of Dr Sunitha Manjunath and her team of friends.

"A life without an aim is worthless and so is a death without achievement. The aim of my life is to touch the lives of the hundreds of people who are not as privileged as you and me. I'd like to thank my husband Manjunath, my In-Laws and my friends from Sumanaa Foundation who work tirelessly alongside me across all our initiatives," said an elated Dr Sunitha Manjuanth on receiving the 'ET Power Icons' award for Excellence in Social Service and Public Initiatives.

Dr Sunitha Manjunath has also been awarded the prestigious 'Kempegowda Award' and many more such awards for her contribution to the society.

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News Network
May 3,2020

Bengaluru, May 3: Karnataka Chief Minister BS Yediyurappa requested his Maharashtra counterpart Uddhav Thackeray to release six TMC water from his state's reservoirs to rivers in Karnataka to meet acute drinking water shortage in North Karnataka.

Yediyurappa pointed out that the North Karnataka districts, namely Belagavi, Vijayapura, Bagalkot, Kalaburagi, Yadagiri and Raichur are facing acute shortage of drinking water due to onset of summer during early days of March this year.

"I request you to kindly direct the concerned authorities to release 3 TMC of water from Warna/Koyna reservoirs to Krishna river and 3 TMC of water from Ujjaini reservoir to Bhima river on humanitarian grounds for drinking purpose," Yediyurappa said in his letter.

He reminded Thackeray that even in the past the Maharashtra government had released water from its reservoirs to meet the drinking water needs of both human beings and livestock in drought-affected areas of Karnataka.

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News Network
June 10,2020

Bengaluru, June 10: A court in Bengaluru has ejected the bail plea of Amulya Leona Noronha, a college student who has been accused of sedition for saying “Pakistan Zindabad” at the beginning of a speech during a protest against the Citizenship Amendment Act (CAA) in the city on February 20.

The court claimed that if granted bail, the 19-year-old student of journalism and English at a Bengaluru college “may involve (herself) in similar offence which affects peace at large”.

Rejecting her bail plea, 60th additional city civil and sessions judge Vidyadhar Shirahatti said in his order, “If the petitioner is granted bail, she may abscond. Therefore, the bail petition of the petitioner is liable to be rejected.”

The police had booked Amulya under charges of sedition and promoting enmity between groups, although her friends claimed she was trying to convey a message of universal humanity by chanting zindabad in the name of all nations, including Pakistan and India.

Amulya, known for her oratory, and often invited at protests against the CAA, NRC and NPR, was arrested on the evening of February 20.

Video clips of the speech showed her chanting “Hindustan Zindabad” soon after saying “Pakistan Zindabad” and trying to tell the audience — her microphone had been taken away by then — that all nations are one in the end. She could not complete the speech; the protest was being held at Bengaluru’s Freedom Park.

Amulya’s bail plea was delayed on account of the lockdown, which came into force on March 25 — around the time hearings were due to begin in a lower court. Bengaluru police did not file a chargesheet against the student during the lockdown.

In the course of bail hearings, which began after lockdown restrictions were eased, the public prosecutor argued that Amulya was trying to incite people to create a law and order problem. The prosecutor also argued that she had earlier been accused of causing hatred and disaffection towards religion and the government established by law in India by holding a placard that stated “F##k Hindutva” during a student protest.

The prosecution argued that the student, if released, may commit similar offences since cases were already registered against her.

Defending Amulya, a friend who was part of the February 20 protest said, “Before she could complete what she wanted to say they surrounded her and grabbed the microphone. She was later placed under arrest on charges of sedition. What she was trying to say was, if we love one country it does not mean we should hate another.” Another friend said, “Please see her Facebook post of February 16, around 8 pm. Loving another country does not mean you are going against your own — this is exactly what she was trying to say (at the protest). She is promoting unity among nations…”

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