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.
Comments
Ram Naik India is not belongs to you there is a COMMON constitution to
all INDIANS. The seat which you holding is a respective ONE. Don't misuse or try to pollute. If you people not respecting the constitution then your same policy will destroy you.
cheddis are missing here also....
O armed cheddis show u r stamina against most wanted BABA's..
Beliye Eddu Hola Meidanthe
Where are Mulla Mulayam, his son akilesh and their wazeer azam khan ?
and bargain king Shahi imam ? All are using minorities as vote Bank. AAP is best solution for all the problem in the current scenario.
hahahaha muah what a word rama naik ji ... saabis are burning ... obba thirdrated saying we have guts only when we have drinks .. ofcourse even their ummah gang that is ISIS , uses drugs to fight . one slum shaiekh saying one verse .. hahaha ... just 2 million millitarised jewish army , 56 muslim nations cannot do anything .. they are doing mujra infront of israel .. just imagive if hindus are millitarised ... pinkaan and gaddakke benki hatchiteevi rashtradrohi. galige .. jai sri ram ... even pakistan has 200 million muzzies and 200 nukes .. but they cannot stop drone attack from USA in their country .. pakistan claims they are the protectors of holy sights ... hahaha ... first to take weapons are jewish ,then christians now hindus along with buddhists . who wants these rogue irrtitating culture ... hara hara mahadev , arm hindus for the protection of bharath mata , which is under threat from jihadists and islamic mercnearies ...
narendra Modi govt compliments to hindu terrorist......
I request muslim organisations to provide same arm camps to all of their members...
It is the duty of Governor to maintain Law and order in co-ordination with state govt. instead it supports this kind of illegal activities.
If people are allowed to take Arms what will be the future of Inida..
It is shame to the democratic country like India and going back to the old age where there was no Law and order.
It is the Duty of the governor to maintain Law and order with co-ordination of State Govt. and instead supporting sangh parivar to violate Law and order in the name of self defense!!!
If the Ruler itself is supporting this kind of activities just imagine what will be the future of India....
terrorists are trained and government is defending it.
They only have guts to fight someone wen they drink alchohol....
Let them practice or get trained!! Remember one thing - \ Jo bhi hota hai, Manzure khuda hota hai!! Maarne wale se bachane wala bada hai wahi hamara Parwardigar hai!!"
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