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
January 19,2020

Bengaluru, Jan 19: Australia has conferred its highest civilian honour, the Order of Australia honour, on Biocon founder Kiran Mazumdar-Shaw for her contribution towards advancing the country's relationship with India.

Australia's High Commissioner to India Harinder Sidhu invested Mazumdar-Shaw as an Honorary Member within the Order of Australia (AM) in the General Division at a ceremony in Bengaluru on Friday, the Australian High Commission said in a statement.

An alumnus of Federation University Australia, Mazumdar-Shaw is the founder of Biocon, one of India's largest bio-pharmaceutical companies.

She contributes immensely to promoting women in STEM through the joint research programmes developed between Biocon and Deakin University, Australia, as part of her deep and long-standing commitment to gender equality, the statement said.

Mazumdar-Shaw - an Australian Global Alumni Ambassador - is also recognised for her sustained and significant contribution to industry academia collaboration between Australia and India, it said.

The ceremony was attended by representatives from Indian and Australian business, the diplomatic corps, and family, friends and peers of Mazumdar-Shaw, the statement said.

Speaking at the event, Sidhu said, "Dr Mazumdar-Shaw is a tireless champion of the commercial, educational, and people-to-people links between our two countries, and this award recognises her commitment to progressing the Australia-India partnership."

Honorary appointments in the Order of Australia are made to foreign nationals who have made an outstanding contribution to Australia or humanity at large.

Mazumdar-Shaw is the fourth Indian citizen to be awarded Australia's highest civilian honour.

This follows the conferment of superstar batsman Sachin Tendulkar in 2012, Former Attorney General of India Soli Jehangir Sorabjee in 2006, and Mother Teresa of Kolkata (Agnes Gonxha Bojaxhiu) in 1982.

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coastaldigest.com News Network
April 25,2020

Bengaluru, Apr 25: Bajrang Dal's former Karantaka satate convenor Mahendra Kumar, who dedicated last decade of his life to expose the misdeeds and lies of Sangh Parivar, passed away today due to cardiac arrest here. He was 47 years old.

Kumar was undergoing treatment at Ramaiah hospital Bengaluru where he breathed his last today (April 25) morning. His final rites will be held in his hometown, sources said.

Kumar, who hailed from Koppa in Chikkamagaluru was a resident of Bengaluru.

He had reportedly involved in the 2008 attacks on Christians' places of worship in Mangaluru and Chikkamagaluru and had faced arrest for that. 

However, he quit Bajrang Dal same year and the apologized to Christians. He joined Janata Dal (Secular) in 2011.

After quitting Bajrang Dal and adopting left ideology, he openly attacked the ideology of right-wing outfits. 

He founded Jana Dhwani movement as a voice for the oppressed classes of the state. He used social media to attack the "manuvaad" for past one decade.

Comments

AA
 - 
Sunday, 26 Apr 2020

Rest in peace.....Sir

who will take over his job, who will fulfill his wishes to free this country from manuvad..?

Angry Indian
 - 
Saturday, 25 Apr 2020

GOD will turn the table for his good work at the last moment...we really lost good voice who is to support humanity...

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News Network
June 25,2020

Bengaluru, Jun 25: A total of 442 new cases of COVID-19 were reported in Karnataka on Thursday taking the total count of cases in the state to 10,560.

According to the State Health Department, there are 3,716 active cases and 6,670 patients have been discharged after treatment. Six more deaths have been reported in the last 24 hours, taking the death toll to 170.

India's COVID-19 count reached 4,73,105 on Thursday with the highest single-day spike of 16,922 cases in the last 24 hours.

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