Video showing Karnataka expat's plight in Saudi Arabia goes viral

Bengaluru, May 5: Life is limping back to a new normalcy in most parts of Karnataka with easing of Covid-19 induced restrictions yesterday as the State headed into the third phase of lockdown started since March 24.

According to the guidelines issued by the Centre, industrial activities, construction works, essential, non-essential shops, delivery of essential goods through e- commerce, courier and postal services, banking and agriculture activities, plying of four-wheelers and two-wheelers and inter-state movement of goods vehicles is permitted in all the zones, whereas buses are allowed to ply only in green and orange zone districts.

This apart, sale of liquor was also allowed at the designated shops. Police said vehicular movement is allowed only from 7am to 7pm for ordinary citizens.

Clarifying about the movement of people, Bengaluru police commissioner Bhaskar Rao tweeted, "From Monday you don't need a pass to move in Bengaluru between 7am and 7pm. After 7 pm and up to 7am the following morning, even if you have a pass you are not allowed to move except medical and essential service. Checkpoints will remain and your ID may be asked. Please be responsible." After the restrictions were lifted, heavy vehicular movement was witnessed in parts of Bengaluru leading to traffic jam in some areas.

Chikpet, which is the main trade area in Bengaluru, saw some activities.

With restrictions on public transport continuing, this unusually crowded place had very less footfall. "Movement of public is limited due to ban on public transport, such as city buses and Metro Rail.

"The trade activities are taking place between retailers," trade activist and joint secretary of Jain International Trade Organisation Sajjanraj Mehta said .

Select liquor shops in the city and other parts of the state pulled up shutters after being closed for about six weeks due to the lockdown with tipplers thronging them in huge numbers at many places.

Some traders in the city complained that they received notices regarding the Tax Deduction at Source for the month of April "thought here were no trading activities."

Meanwhile, Chief minister B S Yediyurappa announced on Monday that free bus service for migrant labourers, which is operating smoothly, has been extended till Thursday.

Feb 19: Bavaguthu Raghuram Shetty was once a typical billionaire with a taste for the high-life.

He splurged on a private jet, vintage cars and two entire floors of the Burj Khalifa, the world’s tallest skyscraper. His website shows him hobnobbing with politicians, Bill Gates and Bollywood royalty.

“The thrill of speed and freedom makes me love cars,” Shetty, 77, told local reporters last year.

Shetty had more than enough money -- at least on paper -- to afford such a lifestyle from companies he helped found, including hospital operator NMC Health Plc and financial services firm Finablr Plc. On Dec. 10, his stakes in the public companies were valued at $2.4 billion, making up the bulk of a fortune spanning education, hospitality and one of the world’s oldest tea companies.

Then, a week later, Carson Block came along.

Block’s investment firm, Muddy Waters, issued a report criticizing NMC’s accounts and disclosing a short position. Since then, Muddy Waters’s scrutiny has snowballed into a troubling scenario for Shetty that sheds light on his complex share arrangements and casts doubts about his net worth. His holdings in Finablr and NMC are worth $885 million, but Shetty’s fortune may now be just a fraction of that, depending on the size of his borrowings.

Filings this month show that Shetty pledged a quarter of his NMC stake against loans with First Abu Dhabi Bank and Zurich-based Falcon Private Bank. Two other shareholders may own half of his reported stake. Another lender -- Al Salam Bank Bahrain -- has already sold some of those shares to enforce security over a loan for Shetty, and NMC said Tuesday that First Abu Dhabi Bank sold another chunk earlier this month.

The situation “seems to have gone beyond some of the issues that Muddy Waters focused on initially,“ said Gavin Launder, a fund manager at Legal & General Investment Management, who owned shares in NMC until October. “The increased scrutiny has unearthed other issues.”

Law firm Herbert Smith Freehills has launched a review of Shetty’s holdings at his request, a spokesperson for the Indian-born businessman said, declining to comment further until the analysis is completed. Shetty resigned Sunday as NMC’s chairman.

In its Dec. 17 report on NMC, Muddy Waters hinted at potential overpayment for assets, inflated cash balances and understated debt. Shares of the United Arab Emirates’ biggest private health-care provider have since plunged 67%, and the firm is now the focus of takeover speculation. The sell-off also spread to Finablr, whose stock has tumbled 64% in that span.

NMC has disputed Muddy Waters’s claims, and the company hired former FBI Director Louis Freeh to conduct an independent review of the short seller’s allegations. Meanwhile, local regulators “are making inquiries with the relevant parties,” a spokesperson for the U.K.’s Financial Conduct Authority said.

Shetty is hardly the only ultra-wealthy person to leverage his assets. Elon Musk has used his shares in Tesla Inc. to obtain personal loans, while Oracle Corp. Chairman Larry Ellison has put up millions of the company’s shares to fund a lavish lifestyle that includes trophy properties, America’s Cup teams and the Indian Wells tennis facility in California.

But such deals can also sour, as demonstrated by Shetty’s lenders selling shares his investment firm pledged. He and his advisers are investigating details of the sales as part of their legal review, according to filings.

To complicate matters, Shetty pledged another batch of NMC stock in 2018 as part of a so-called equity collar arrangement with Goldman Sachs Group Inc. that uses options to limit the impact from share moves. Last month, he also pledged most of his stake in Finablr to refinance a loan from the company’s takeover of foreign-exchange firm Travelex for about $1.2 billion.

BRS Ventures Investment, the UAE-based holding company for most of Shetty’s assets, doesn’t report consolidated financials, preventing a complete analysis of his net worth. His other assets include a catering company, a waste-management firm and pharmaceutical business Neopharma, which four months ago was in the early stages of planning for an initial public offering.

Block, 43, earned his reputation as a short seller a decade ago through targeting U.S.-listed Chinese companies that he claimed were frauds. More recently, his San Francisco-based firm focused on British litigation-finance firm Burford Capital Ltd. and Japanese biotech stock PeptiDream Inc. Short sellers seek to benefit from a decline in a company’s share price.

Shetty founded NMC in 1975 after moving to Abu Dhabi from his native India. He created Finablr two years ago to consolidate his financial brands before listing it on the London Stock Exchange in 2019.

Block said he didn’t anticipate NMC’s shareholding drama.

“I wouldn’t have been able to predict that we’d get these bizarre disclosures about unclear share ownership coming out of the company,” he said in a Feb. 13 phone interview. “This has been obviously a more dramatic unraveling than we usually see.”

Bengaluru, May 15 Reformed underworld don N Muthappa Rai died battling cancer at a private hospital here on Friday, hospital sources said.

Rai, 68, was suffering from brain cancer for the past one year and was admitted at Manipal Hospital on Old Airport Road, where he died at 2.30 am, the sources said. Rai is survived by two sons.

Born into a Tulu-speaking Bunt family in Dakshina Kannada''s Puttur town, Rai entered the crime world at a very young age.

Karnataka police issued arrest warrants against Rai in eight cases, including murder and conspiracy.

In 2002, Rai was deported to India from the United Arab Emirates. On arrival, he was questioned by various investigation agencies such as the Central Bureau of Investigation (CBI), Research and Analysis Wing (RAW) and Intelligence Bureau (IB), and by the Karnataka police. He was later acquitted due to the lack of evidences.

In his reformed years, Rai founded charitable organisation ''Jaya Karnataka''.

Rai has appeared in Tulu film ''Kanchilda Baale'' in 2011 and Kannada film ''Katari Veera Surasundarangi'' in 2012.

Bollywood director Ram Gopal Varma wanted to make a movie based on Rai''s life. The film roped in actor Vivek Oberoi for the lead role and was shot in Bengaluru, Mangaluru, Mumbai, Dubai and London. However, it has not been released due to production delays.

Rai was enthusiastic about the film and even celebrated his birthday with Varma and Oberoi.

After his cancer diagnosis, Rai withdrew from public life and resigned from Jaya Karnataka.

His last rites are likely to be performed at Bidadi on Friday, family sources said.