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
Good initiative and we hope this has a wide outreach.
The activities of the fringe antisocials have to exposed for what they are and whom they serve.
By educating our youth, imparting skills, creating jobs and fostering humanity, we can ensure that harmony is sustained.
We are busy firefighting and not bothering to target and tackle the root cause, the real fire.
So pleased to see that the various sects have come together towards a better future for our beloved Mangalore.
Bravo!
Few on dias are jobless. Nice way to make living.. no income tax at all.
Easy life
Organising such an event is itself a landmark in communally sensitive city like Mangalore. It is Humanity Vs Hate & Terror. Wish this small step by proud sons of Mangalore prove to be a sigh of relief to the Peace loving general public of twin districts. Hope this will be the start of isolating BAD ELEMENTS from ALL COMMUNITIES for a Better Managalore!! Jai Hind!
Great stuff Saif.. May God Bless you... Hope all the Mangaloreans understand and live peacefully... @ Viren .. dont follow whoever you are following blindly..it will lead you no where... hatred has never brought peace no where in the world.. it will only lead to destruction.. live and let live.. Jai Hind
Hi Mangaloreans,
Thanks a million for your support and kind words.
1. Small drops make a ocean , have patience
2. Wish you the same and Thanks for the motivation madam
3. It's just the beginning and we have just started with a few , will be adding more in the future.
4. Thanks a million sir
5. The youth wing of Billavara Sangha Yuva Vahini is with us & youth from all communities are being misused
6.Thanks a million for your wishes sir
7. We are organising such events to warn Mangaloreans about trouble makers like you in all communities, we have filed a Cyber Crime Complaint and they are tracking your IP Adress , expect a call soon where you are
Jai Hind
this is a pure gimmick by both parties. In fact worship idols itself a gimmick.. all show off.. to fool people..
I think organisers forgot to include Hizbul mujahideen. hahaha.
Try involve Billavara Sangha representation. Billava youths are mostly used by the leaders of violence for their political benefits.
Most of the roudism, murder etc cases billava unemployed or uneducated youths are behind . They are the one who get killed and most they are the one who are going to the Jail.
Good Luck!
All the best.
Our twin districts known for peaceful co-existence communal harmony,love,brotherhood and trust. And also known for hospitality for guests Mangaloreans are intelligent educated smart and kind hearted people.. But now a days people are living with hatred and
insecure feelings. Few anti social elements trying to spoil the image of our districts by seeding the hatred poisons in the minds of the innocent people. It is the responsibility of all the NGO's ,politicians, religious scholars, administrative institutions to promote and uphold the peace and harmony in the society.
Major NGO's and religious organizations missing in the unique conclave.
Good move. God bless you all. God bless Mangaluru.
But when the major organisations will unite for a better cause? you can bring small organisations together anytime. Even though bunts organisations is part of the event, am sure it's for name sake.
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