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.
The decision was taken by chief minister Siddaramiah, who was looking for a competent and active minister to handle the department of Food and Civil Supplies, after the departure of Dinesh Gundu Rao.
Comments
I am a APL card holder. When we get ration coupons, in coupons for APL 5 kg rice and 5 kg wheat. When we go to ration shop if we say i do not want wheat only 5 kg rice they do not give. They says if you want rice you should take wheat also. Other wise change in your coupon for rice only. But we can not change only rice.
Kindly tell what is the procedure for only rice and no wheat for me.
Sir,
There is shortage of Non subsidised Commercial L.P.Gas cylinder of 19 Kg capacity in the market as HPCL has stopped giving new cylinders to the dealers since past 6 months.
The reason stated is that the turnaround ratio is less than 1 per month.
It is very surprising stand in the open market regime and HPCL has no ground to take such decision in general. The new release is stopped to those dealers who has more than 1 turnaround per month.
Black marketing of commercial cylinders is now a reality.Thanks to HPCL !!!
You are requested to appraise our food minister to manage this issue and oblige.
Regards
Not a good move by CM....Let's see....
Good Move... UTK did better as health minister...
He should also improve the food and civil dept. too... Lets wait before we criticize
this siddu dont have any work to do, Ut khader has done very good job in the field of health all the best for your future work.
One of the biggest blunders of Siddu govt. Outsider Siddu is helping his cheddi dost Ramesh Kumar
New minister in health department has nothing to do. all works are completed my Mr Khader. new one has to just eat, sleep and pose for pics.
congrates. but sad that health dept will be corrupted from today.
congratulation UT Khader, we all NRI's know that u have the capabilty to work in any sector, keep up your good work, lets c what u can do in food and civil supply, being health minister u have given good service as we all know.
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