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.
“Why should you snatch away the poor's meal?” asked Bhimrao Dhonde, who represents Beed's Ashti, during a discussion on the state's agrarian crisis.
Comments
It is better for government to impose ban on beef as it is not at all good for health.....Moton is a good meat and healthy...
Without distributing the Ambani wealth to poor you cant impose ban on anything. Poor people are suffering because of rich Fadnavi who has easy access to all sort of food. I'm used to mutton now. Even if you allow me to eat beef i wont.
There intention is not to snatch snatch away the meat of export from their leaders.
Beef ban increased beef export. Hence, my guess, the farmers must be selling cows to the exporters. It is very clear that the present administration is anti poor. Election in the corner will woke him up now.
dear avish, the loan burden and no food make the people to sucide. Do you say that the life of cow is more important than the human being? he can sell the cow if he want he can save his parents and family. If not all them should be opt for sucide. So parents sake and family sake he is ready to sell the other things which is not necessary at that moment. But people like you who think that more educated ( not being a human) think another way. It will be understandable only when your are in same situation
Dear Kumel are you educated? how the cow becomes your mother. Please check your DNA. We have never seen even in any holy books that the human being is born by Cow.
Another prime example for dirty politics from BJP since Assembly electioons are on the corner, please do not react or comment
Mr kumel,Who you are to feed 17 cr people. Who is parasitic?.mind your language.
Any action in this regard to be implemented immediately before beef eater communities are used to alternative diet, most of them now used to mutton and chicken, After that if we want sell we will never find anyone to buy it.
I think we have to ask all farmers to bring all their spent cattles to Mr. Kumel Chang house. He will look after these mother cows.
I guess he'd be willing to let go of his parents and family as and when they become nonproductive. What a loser!
So parents are cattle? People like you will use any analogy to stick to your stand. Don't impose your ideas on the rural folks. They know exactly what they are doing and what to do with their life, diet, animals, crops etc. India is a non vegetarian country. Get used to it
If we can feed 17 crore parasitic population of jihadis, surely we can feed the holy mother cow
Very well said, I came from an agricultural family too and they have similar practice. I remember Bangalore in the 80's and the menace of cows roaming on the road. Then the IT boom happened and \ban\" we dont see them anymore and they are now sold as beef."
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