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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, Jan 13: Though he submitted his resignation as leader of the opposition over a month ago, former chief minister Siddaramaiah continues as the face of the Congress in Karnataka.

However, this may change as All India Congress Committee (AICC) interim president Sonia Gandhi has summoned Siddaramaiah to Delhi for a final consultation over change of guard. Over the past month, there has been speculation over the possibility of Congress persisting with Siddaramaiah as opposition leader and either party troubleshooter DK Shivakumar or former ministers MB Patil, HK Patil or Eshwar Khandre replacing incumbent president Dinesh Gundu Rao. Both tendered resignations owing moral responsibility for the party's dismal performance in the 15 bypolls held last month.

In the past 24 hours, there has been talk of Siddaramaiah being asked to be the state unit president and vacating the other post for a young turk or experience legislator including the likes of Shivakumar who could be the face of KPCC by 2023 if he gets a clean chit from the ED in cases of money-laundering, etc. Seniors, including former KPCC president and DyCM G Parameswara and former minister HK Patil, are strong contenders to be leader of the opposition if Siddaramaiah is asked to vacate the post.

However, sources in the Siddaramaiah camp dismissed the possibility of him becoming KPCC president. "He has never aspired for the post and the high command is not inclined to do it," said a member in his camp.

Siddaramaiah may meet Sonia on Tuesday morning. It's still unclear if any other KPCC functionaries have been summoned. Sources said Sonia is scheduled to leave India for medical treatment on January 15 and wanted to complete the consultations about Karnataka. The high command has reportedly gone through reports submitted by party observers Madhusudan Mistry and Parameswara.

Bengaluru, Mar 21: Appealing for support to the Prime Minister's call for observing 'Janata Curfew' on Sunday to contain the outbreak of COVID-19, Karnataka Chief Minister B S Yediyurappa has asked people not to come on roads immediately after the end of curfew time as it can nullify the measure.

Noting that people have extended both moral and societal support to this unique curfew, he said "Now, my appeal to people on behalf of Prime Minister Narendra Modiji is, don't come on roads and out of your dwellings immediately after nine in the night when curfew time ends. Remain settled in your houses and bungalows avoiding all public appearances on roads and other public places."

"Your coming out in open can nullify the 14-hour measure to contain the spread of virus. As a co-operation to authorities and the society, please remain indoors and stay with your near and dear ones," he said in a release.

Calling for "resolve and restraint" to fight the virus, the Prime Minister during his address to the nation on Thursday had asked the entire country to observe 'Janata curfew' on Sunday.

Calling for a 'Janata curfew' on March 22 from 7 am-9 pm, Modi had said no citizen, barring those in essential services, should get out of their house, and asserted that it will be a litmus test to show how much India is ready to take on the challenge of the coronavirus pandemic.

Stating the Karnataka government has so far been dealing successfully in containing the Covid-19 virus, Yediyurappa said this has happened because of people's co- operation.

He also asked people not to forget to involve in a bout of applause as a mark of appreciation to people involved in containing the spread of the virus and treating those affected by it.

Three new COVID-19 cases have been confirmed in Karnataka on Saturday, taking the total number of infections to 18 in the state.