Dawood Ibrahim depressed after his only son becomes a devout Muslim, opposes illegal activities

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.

Udupi, Apr 24: While several state governments and NGOs are actively working to provide essentials to the needy amid the COVID-19 lockdown, a fisherwoman in Karnataka's Udupi has proved that even a small gesture of help for others can make a huge difference in the society.
A fisherwoman, Sharadakka, distributed rice to 140 needy families in her neighbourhood during the ongoing lockdown. The contribution was made by spending all her life savings amounting to Rs 30,000. The amount was saved by her over a period of time in an effort to build a house for herself.
On Thursday Udupi Deputy Commissioner G. Jagadeesh visited her and ensured help to build her house.
"Spending her meagre earnings, Sharadakka generously filled many empty stomachs amid the nation-wide lockdown, which is a matter of pride," said the Deputy Commissioner.

Tumakuru, Jul 7: Coronavirus is spreading at the community level in Karnataka, said minister, JC Madhuswamy on Monday.

"Medical condition of eight infected with coronavirus admitted in Tumkur COVID Hospital is critical. There is no guarantee of their lives as per the information. We somewhere feel we are worried that coronavirus is spreading at the community level," Madhuswamy, Tumakuru district-in-charge minister, told reporters here.

"We have reached a point where it is difficult for the district authorities to restrain it, even though we are trying to restrain it. Somewhere the situation is going out of hand," he said.

The minister confirmed that the cumulative toll in the district due to COVID-19 rises to 9.

Earlier, Chief Minister BS Yediyurappa, Deputy CM Ashwath Narayan, Medical Education Minister Dr Sudhakar have denied of community transmission of coronavirus in Karnataka.

According to the Ministry of Health and Family Welfare, there are 23,474 coronavirus cases in Karnataka including 13,255 and 372 deaths.