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
February 12,2020

Kathmandu, Feb 12: Nepal has suspended the licence of a mountainous resort for three months due to poor security management and managerial weakness at the hotel where eight Indian tourists, including four minors, died of possible asphyxiation, according to media reports.

Kathmandu: Nepal has suspended the licence of a mountainous resort for three months due to poor security management and managerial weakness at the hotel where eight Indian tourists, including four minors, died of possible asphyxiation, according to media reports.

Tragedy struck a group of 15 tourists from Kerala when eight of them died on January 21 due to possible asphyxiation after they fell unconscious probably due to a gas leak from a heater in their room at a mountainous resort in Makwanpur district.

The tourists were airlifted to HAMS hospital here where they were pronounced dead on arrival. Makwanpur police said the victims might have fallen unconscious due to asphyxiation.

The Department of Tourism on Sunday imposed a ban on the operation of Daman-based Everest Panorama Resort for three months based on the report submitted by a probe committee formed to investigate the death of the Indian tourists from Kerala, the Kathmandu Post reported on Tuesday.

The department decided to shut down the resort as the report submitted by a probe committee pointed out poor security management and managerial weakness at the resort for the incident, it said.

The Ministry of Culture, Tourism and Civil Aviation had formed the probe committee under Surendra Thapa, the director of the Department of Tourism. After a field inspection, the committee had submitted its report a few days ago, pointing to the shortcomings of the resort.

During the investigation, the committee found the resort had not been following the recommended safety measures and was providing substandard services to its guests, The Himalayan Times reported.

Moreover, the committee discovered that the resort had not fulfilled the criteria set by DoT to be categorised a 'resort', it said.

Mira Acharya, director of DoT was quoted as saying by the report that the resort's operations have been halted as per Section 15 of Tourism Act-1979.

"If the resort owner wishes to resume services after three months of suspension, the resort should be upgraded as per the Hotel, Lodge, Restaurant, Bar and Tourist Guide Rules-1981 and also meet the criteria mentioned in a notice published in the Nepal Gazette under the title 'Hotel Classification and Criteria'," Acharya said.

She added that the resort would also have to undergo the Environment Impact Assessment to get the permission from DoT to resume operation.

Meanwhile, the resort management has said that they will work towards meeting the standards fixed by the department and run the resort efficiently.

"We will work towards meeting the standards fixed by the department and run the resort efficiently. We are saddened by the tragic incident. We will ensure that such incidents don't occur in the future,” said Sudesh Gautam, the operator of the resort was quoted as saying by the Kathmandu Post.

The group, after travelling to Pokhara -- a popular mountainous tourist destination -- was on their way back home and stayed at Everest Panorama Resort in Daman.

Those who were killed were Praveen Krishnan Nair, his wife Saranya Sasi and their three children and Ranjith Kumar Adatholath Punathil, his wife Indu Lakshmi Peethambaran Ragalatha and their son.

Everest Panorama Resort was established 28 years ago in Daman Simbhajyang area, a tourist destination in Bagmati Province. The tourist numbers, according to Thaha Hotel Association, have plunged after the tragic accident of January 27.

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News Network
July 23,2020

Mandya, Jul 23: Upset over contracting Covid 19, a 55-year-old man, ended his life by hanging himself, at the designated Covid hospital, in Mandya, on Wednesday night.

The deceased patient is from Kandegala village, Malvalli taluk, Mandya district. He was ailing from renal problems and was under treatment. 

However, he contracted the virus and tested positive for Covid-19. Upset over this, he ended his life by hanging himself on the window grill, in the hospital bathroom, midnight. The incident came to light when other patients went to the toilet.

His last rites were conducted as per the designated Covid-19 protocol, on Thursday, said District Health Officer Dr H P Manchegowda.

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News Network
January 13,2020

Bengaluru, Jan 13: Days after indicating that he may not travel to Davos to attend the World Economic Forum later this month, Chief Minister B S Yediyurappa on Monday said he will be attending the global meet, and that the expansion of his ministry will take place before his foreign tour.

Reiterating that he will keep the promise of making disqualified legislators who have won bypolls on BJP ticket as ministers, he said ministry expansion will happen soon after his meeting with party national president Amit Shah on the matter. "There is no truth in speculations that are going on regarding the cabinet expansion, in fact, Amit Shah had given me time for meeting today in Delhi, but I had to attend important programmes here.

Tomorrow if possible I will cancel all my programmes and will go to Delhi, and get cabinet cleared, there is no problem in that," Yediyurappa said.

Speaking to reporters here, he said the legislators who have won in the bypolls need not worry about the speculations.

"I will fulfil the promise that I have made. If Amit Shah is available I will try to go to Delhi tomorrow. If not he is coming here (Karnataka) on January 17 and 18, will get things cleared and expand the ministry," he said. Yediyurappa had earlier said he will be going to New Delhi probably on January 11 or 12 to discuss cabinet expansion with the BJP high command. However, on Saturday, he said he has decided to discuss the exercise with Shah during the latter's visit to the state next week.

Shah will be here to address a huge rally at Hubballi on January 18 as part of the BJP's nationwide outreach programme to create awareness among the people about the Citizenship Amendment Act.

To a question about his visit to Davos, Yediyurappa said "everyone is persuading me to go, so I have decided to go. As I'm being sent by the central government, so I will have to go, and I will go and come." Yediyurappa along with Union ministers Piyush Goyal and Mansukh Mandaviya as well as chief ministers - Amarinder Singh (Punjab), Kamal Nath (Madhya Pradesh) are among those expected join over 100 Indian CEOs in the Swiss ski resort town of Davos later this month for the WEF's 50th annual meeting.

The Chief Minister, however, had last week, indicated that he may not travel to Davos.

Rubbishing reports about the Ministry expansion after Delhi assembly polls, he said there is no connection between the two.

"I will talk to Amit Shah in a couple of days and immediately take up ministry expansion after that, there is no need for anyone to worry, and there is no truth in certain media reports," he said, adding that expansion exercise will be completed before his Davos visit.

The Chief Minister is likely to travel to Davos on January 20, according to sources.

According to reports, disqualified legislators who got re-elected during the December 5 bypolls on BJP ticket and are all set to become Ministers too had put pressure on Yediyurappa to expand the cabinet before the Davos visit.

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 within 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.

However, with reports that the high command may not be keen on making all the 11 re-elected legislators, whom Yediyurappa has given assurance, as Ministers, it remains to be seen how things turn out.

Cabinet expansion will not be an easy task for the Chief Minister as he will have to strike a balance by accommodating the victorious disqualified legislators as promised and also make place for old guards, upset at being "neglected" in the first round of the induction exercise.

He also has to give adequate representation to various castes and regions in his cabinet and also deal with allocation of key portfolios.

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