Govt buys white Toyota Fortuner for CM after baby crow sits on his old car

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, Feb 28: Historian S. Shettar, 85, breathed his last early on February 28 in Bengaluru. He was suffering from respiratory problems and was hospitalised for over a week.

Shettar was known for his multi-disciplinary work, encompassing linguistics, epigraphy, anthropology, the study of religions and art history. He had extensively worked on the Jain practice of ritual death in Karnataka and Asoka edicts. He had studied and compiled early edicts in Kannada and worked extensively on the growth of Kannada language down the ages.

Born in 1935 at Hampasagara, Ballari district, he went on to study at Cambridge University and started his career as a Professor of History at Karnatak University, Dharwad, his alma mater. He later headed the National Museum Institute of the History of Art, Conservation and Museology in 1978 and Indian Council for Historical Research in 1996. He was also a visiting professor at the National Institute of Advanced Studies, Bengaluru.

He was a bilingual historian who wrote in English for most of his career, but started writing in Kannada in later years. In the last two decades, he developed a keen interest in linguistics and wrote multiple books on classical Kannada and Prakrit. His 2007 book “Shangam Tamilagam” is considered a seminal work in the study of the early period of Dravidian languages. It won him Bhasha Samman from Central Sahitya Akademi. He later wrote two works on Halegannada, classical Kannada. His most recent work was “Prakrita Jagadvalaya” in 2018.

Srinagar, Jan 14: Davinder Singh, deputy superintendent of police, who was arrested on Saturday along with two Hizb terrorists and a Hizb overground worker in Kulgam, has confessed to his interrogators that he had received Rs 12 lakh from the terrorists to ferry them to Jammu and then Chandigarh for their onward journey to New Delhi, IG (Kashmir) Vijay Kumar told the media here on Monday.

Intelligence sources said the terrorists planned to carry out attacks on Republic Day.

The DSP was suspended on Monday and is likely to be stripped of all his awards, including the President’s Police Medal for anti-militancy operations.

Davinder, who was interrogated by various intelligence agencies, including IB, military intelligence and RAW, besides the police, has disclosed that he had put up the terrorists at his Indira Nagar house in Srinagar, right next to the Army’s 15 Corps HQ, and thereafter accompanied them to Jammu in a Maruti car driven by the Hizb overground worker, intelligence sources claimed.

Meanwhile, sources said the Union home ministry may hand over the case to the NIA to find the real motive of the terrorists, Davinder’s links to terrorism and whether he had helped terrorists in the past as well.

The two Hizb terrorists arrested with Davinder are Naveed Babu alias Babar Azam, a resident of Nazneenpora in south Kashmir’s Shopian district, and his associate Rafi Ahmad Rather. The Hizb overground worker, identified as Irfan Shafi Mir, was driving the vehicle when it was intercepted by the police on Saturday. Irfan Shafi Mir has travelled to Pakistan five times on his passport.

Davinder, interestingly, was on duty ensuring security cover for the envoys of 15 countries who visited Srinagar at the Union government’s invitation last week.