Sexual abuse of 6-year-old girl: RSS worker remanded in judicial custody

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 29: The BJP leaders in Karnataka rallied behind Vijayapura MLA Basanagouda Patil Yatnal amid a controversy over his remarks that centenarian freedom fighter HS Doreswamy was a "Pakistani agent."

The saffron party leaders have extended support to Yatnal, days after he called Doreswamy a "fake freedom fighter" who behaves like a "Pakistani agent".

Yatnal made the comments at a press conference on February 25 while reacting to a query on a public meeting organised by the Congress titled 'Save the Constitution'.

"There are many fake freedom fighters. There is one in Bengaluru. Now we have to say what Doreswamy is. Where is that old man? He behaves like a Pakistan agent," Patil had said.

"Doreswamy is an elderly person and senior to all. He had participated in various agitations. He should also see what to talk and who will be hurt with those statements. We have all seen what he said about Prime Minister Narendra Modi," Primary and Secondary Education Minister S Suresh Kumar told reporters in Kodagu on Saturday reacting to Yatnal's outburst against Doreswamy.

Noting that the statements were made in bitter taste, Kumar said, "If you speak unpleasant (things), you will hear unpleasant."

Bellary City MLA G Somashekara Reddy too backed Yatnal saying that the his statement was appropriate. "There is nothing wrong in his statement. It is absolutely correct. I support him. It is not just okay to be a freedom fighter, but he should be a 'Deshbhakt' (patriot) too, who respects the unity and integrity of the nation."

On Friday, another BJP Minister KS Eshwarappa slammed Doreswamy alleging that he had visited Amulya Leona's residence and shared a good relationship with her family.

Leona had raised 'Pakistan Zindabad' slogans at an anti-CAA event here on February 21, taking everybody present by shock and dismay.

"We respect Doreswamy but he dances to the tune of Congress and supports whatever their leaders say," Eshwarappa said.

Mangaluru, May 13: Coastal district of Dakshina Kannada today reported a fresh covid-19 positive case. According to sources, this case also linked to Manglauru’s First Neuro Hospital, which has emerged as the corona hub of coastal Karnataka.

Health and Family Welfare department in its today’s bulletin revealed that a 38-year-old woman from Darandabagilu near Someshwara in Mangaluru taluk of Dakshina Kannada was tested coronavirus positive.

It is said that the woman was in touch with P-507, an octogenarian, who was being treated for neurological issues at First Neuro Hospital.

With this the total number of coronavirus positive cases reported in Dakshina Kannada rose to 34. Among them only 26 are residents of Dakshina Kannada. Four are from Kasaragod, three from Udupi and one from Bhatkal.

Among 34, currently there only 17 active cases. The condition of two among them is said to be critical.