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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June 9,2020

Bengaluru, Jun 9: The total number of positive COVID-19 cases in Karnataka rose to 5,921 on Tuesday after the state reported two deaths and 161 new cases of the virus.

"Two deaths and 161 new COVID-19 positive cases reported from yesterday 5 pm till today at 5 pm, taking the total number of positive cases to 5,921," said Karnataka Health Department.

The toll in the state is presently at 66.

While 164 patients have been discharged today, the number of discharged patients so far is 2,605. The active cases in the state stands at 3,248.

Among the new cases, Yadgir contributed highest (61), followed by Bengaluru Urban (29) and Dakshina Kannada (23). Udupi did not report any new case. More details to follow.

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News Network
January 30,2020

Bengaluru, Jan 30: Karnataka Chief Minister B S Yediyurappa, who reached the national capital on Thursday, said he will discuss the much-awaited Ministry expansion with the BJP high command.

"It's been long that I visited Delhi. I will meet the party national president J P Nadda and Home Minister Amit Shah and take their suggestions on the cabinet expansion," Yediyurappa told reporters.

The chief minister said he will also call on Finance Minister Nirmala Sitharaman and Petroleum Minister Dharmendra Pradhan and discuss about development issues related to Karnataka.

Yediyurappa has been anxiously waiting for the high command's nod to expand his ministry amid intense lobbying by the aspirants.

Opposition parties have been critical of the BJP and Yediyurappa over the delay in cabinet expansion, alleging that he was weak and that the administration had collapsed.

As the chief minister has already made it clear that 11 of the disqualified JDS-Congress MLAs who got re-elected in the bypolls on BJP tickets will be made ministers, lobbying has been on in the party for the remaining ministerial berths.

Currently, there are 18 Ministers, including the chief minister in the cabinet that has a sanctioned strength of 34. Sixteen berths are vacant.

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News Network
April 29,2020

Washington, Apr 29: A US government panel on Tuesday called for India to be put on a religious freedom blacklist over a "drastic" downturn under Prime Minister Narendra Modi, triggering a sharp rebuttal from New Delhi.

The US Commission on International Religious Freedom recommends but does not set policy, and there is virtually no chance the State Department will follow its lead on India, an increasingly close US ally.

In an annual report, the bipartisan panel narrowly agreed that India should join the ranks of "countries of particular concern" that would be subject to sanctions if they do not improve their records.

"In 2019, religious freedom conditions in India experienced a drastic turn downward, with religious minorities under increasing assault," the report said.

It called on the United States to impose punitive measures, including visa bans, on Indian officials believed responsible and grant funding to civil society groups that monitor hate speech.

The commission said that Modi's Hindu nationalist government, which won a convincing election victory last year, "allowed violence against minorities and their houses of worship to continue with impunity, and also engaged in and tolerated hate speech and incitement to violence."

It pointed to comments by Home Minister Amit Shah, who notoriously referred to mostly Muslim migrants as "termites," and to a citizenship law that has triggered nationwide protests.

It also highlighted the revocation of the autonomy of Kashmir, which was India's only Muslim-majority state, and allegations that Delhi police turned a blind eye to mobs who attacked Muslim neighborhoods in February this year.

Coronavirus state-wise India update: Total number of confirmed cases, deaths on April 29

The Indian government, long irritated by the commission's comments, quickly rejected the report.

"Its biased and tendentious comments against India are not new. But on this occasion, its misrepresentation has reached new levels," foreign ministry spokesman Anurag Srivastava said.

"We regard it as an organization of particular concern and will treat it accordingly," he said in a statement.

The State Department designates nine "countries of particular concern" on religious freedom -- China, Eritrea, Iran, Myanmar, North Korea, Pakistan, Saudi Arabia, Tajikistan and Turkmenistan.

The commission asked that all nine countries remain on the list. In addition to India, it sought the inclusion of four more -- Nigeria, Russia, Syria and Vietnam.

Pakistan, India's historic rival, was added by the State Department in 2018 after years of appeals by the commission.

In its latest report, the commission said that Pakistan "continued to trend negatively," voicing alarm at forced conversions of Hindus and other minorities, abuse of blasphemy prosecutions and a ban on the Ahmadi sect calling itself Muslim.

India's citizenship law fast-tracks naturalization for minorities from neighbouring countries -- but not if they are Muslim.

Modi's government says it is not targeting Muslims but rather providing refuge to persecuted people and should be commended.

But critics consider it a watershed move by Modi to define the world's largest democracy as a Hindu nation and chip away at independent India's founding principle of secularism.

Tony Perkins, the commission's chair, called the law a "tipping point" and voiced concern about a registry in the northeastern state of Assam, under which 1.9 million people failed to produce documentation to prove that they were Indian citizens before 1971 when mostly Muslim migrants flowed in during Bangladesh's bloody war of independence.

"The intentions of the national leaders are to bring this about throughout the entire country," Perkins told an online news conference.

"You could potentially have 100 million people, mostly Muslims, left stateless because of their religion. That would be, obviously, an international issue," said Perkins, a Christian activist known for his opposition to gay rights who is close to President Donald Trump's administration.

Three of the nine commissioners dissented -- including another prominent Christian conservative, Gary Bauer, who voiced alarm about India's direction but said the ally could not be likened to non-democracies such as China.

"I am deeply concerned that this public denunciation risks exactly the opposite outcome than the one we all desire," Bauer said.

Trump, who called for a ban on Muslim immigration to the US when he ran for president, hailed Modi on a February visit to New Delhi.

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