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
March 19,2020

Bengaluru, Mar 19: Medical Education Minister Dr Sudhakar on Wednesday said that the government is increasing the number of labs for COVID-19.

"For the last two months, screening has been done at airports. Quarantine is also being done. The situation was reviewed by the state cabinet. All passengers from abroad will be home quarantined or they can stay at government facilities or budget hotels or resorts or private hospitals," Sudhakar said in the Assembly.

"We have issued many advisories. Until 31st March, pubs, and hotels, religious events, should not have an assembly of more than 100 persons. Two bulletins will be issued twice a day. All those who arrive from abroad will be stamped that they have arrived from abroad. Covid-19 is growing at a phenomenal pace. We need not panic but we need to be cautious," he said.

Sudhakar continued: "There are 54 labs in the country. Karnataka has five labs, the most among all states. We are increasing the number of labs. In our country, we have tested less than 10 per cent. In Karnataka, we should conduct test on more people."

The minister said the government will devise a way to be able to track down all those home quarantined through their mobile phones.

"Karnataka stands fourth after Maharashtra, Kerala and Uttar Pradesh. We are in the second stage. The next 2-3 weeks are detrimental. This is a pandemic situation. People have to also take responsibility. Social distancing is the real solution and key to eradicating this COVID-19. In the larger interest of the health of the state, we have to take drastic measures," he said.

"We are now in the 2nd stage. The next 3 weeks are very important. If we take care, the state can escape what's happening worldwide," he said.

Congress MLA UT Khader demanded action against those people who do not follow rules.

"Only shutting airports will not help. What about domestic passengers? Coronavirus must come under Ayushman Bharat. Keep isolated patients away from normal people in the ICU in government hospitals. Take action against those who do not follow the rules," he said.

Congress MLA Dr Yathindras said that screening is not enough and travelers need to be lab tested.

A total of 151 positive cases of coronavirus have been reported in India so far, the Union Ministry of Health and Family Welfare said on Wednesday.

Thirteen positive cases of COVID-19 have been reported in Karnataka till today.

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News Network
May 9,2020

Chikkamagaluru, May 9: Karnataka Minister for Tourism C T Ravi on Friday said that Indians who are stranded abroad are being repatriated into the country on the pre-condition of quarantine.

“The Centre is repatriating Indians who are stranded in around 37 countries, amid the lock-down, of which people from Saudi Arabia and Dubai will be brought via ship for free. These people will have to undergo the mandatory quarantine period once they land in the country,” Ravi told media here.

The government has accorded priority to the elderly and pregnant women during the repatriation process. The state government has held due discussions with the Centre in this regard, he added.

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News Network
January 15,2020

Mangaluru, Jan 15: A 28-year-old man, who is a first-year MBBS dropout, was arrested by the police after he posed as a doctor and treated patients at a private hospital at Derlakatte on the outskirts of the city.

The arrested has been identified as Mohammed Habib Hussain, a native of Shivamogga, who was residing in Attavar, Mangaluru. He had discontinued studies after the first year due to personal reasons.

The incident took place on Sunday night  at Yenepoya Medical College, Derlakatte. Dr Sampathila Padmanabha, medical superintendent, Yenepoya Medical College, said the accused had come to the medical college at midnight on December 29.

After speaking to the security guard at the hospital entrance, he introduced himself as an assistant to the consulting urologist, and wanted to visit patients at the private ward situated at floor number 7.

After entering, he called the duty nurse to get case sheets. Later, he examined two women patients in the presence of the duty nurse, and also wrote a prescription on the patient case sheet. He also yelled at a nurse, saying that she isn’t doing her duty properly, and left the place.

However, the nurse who grew suspicious, informed the management, after the accused had left the place. The management, who crosschecked about the accused, found out that he is not a doctor, and that he is also not associated with the hospital.

The management sent an advisory to all employees to produce their identity cards, whenever they enter any wards, especially at night, and also to keep an eye on anyone suspicious. The same message was passed on to other hospitals in the vicinity.

The accused again showed up at the hospital on Sunday night. As security guards were told about strangers visiting the hospital in the guise of doctors, he was allowed to enter the hospital premises, so that he can be apprehended. He later went to the reception counter and queried about the consultant urologist. When he noticed that the staff had an idea about what was happening, he tried to flee from the spot. He was later caught by a security guard, and the police were informed. He was arrested by Ullal police station personnel.

Dr Padmanabha added that he used to roam around with his friend in a car. He was also involved in a similar incident at a private hospital in Kankanady, and the same has been informed to the police. He visited hospitals in a car, which has been seized by police.

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