SpiceJet to launch Mangaluru-Dubai flight service in winter season

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.”

Mangaluru: The Karnataka-Kerala border closure at Talapady amidst nationwide Covid-19 lockdown has not only prevented the movement of vehicles and people from Kasaragod to Mangaluru but also stopped the supply of life-saving drugs from Karnataka’s medical hub to its bordering district.

Hundreds of people from Kasaragod and Kannur districts who were treated in hospitals of Mangaluru for past several years are still dependent on some of the medicines that are available only in Mangaluru. Such medicines have become inaccessible for Keralites following the border closure. Every day, a number of people from Kerala call their acquaintances in Mangaluru to see if there is a way to get medicine.

In fact, Karnataka government has blocked all 23 roads that connect the state with Kerala. The reason given was, Kasaragod is the hotbed of coronavirus and allowing traffic even in emergency cases might lead to spread of Covid-19 in border districts of Dakshina Kannada, Kodagu and Mysuru. The attitude has resulted in the death of around a dozen people in Kasaragod district in last couple of weeks.

Even after the intervention of the Supreme Court a few days ago, the authorities in Karnataka are facing the allegation of being hostile either by blocking the way ahead or turning a deaf ear to the patients reaching their border. 

At this juncture, three Good Samaritans – P K G Anoop Kumar of Canara Engineering College, Mangaluru, Satheesh Shetty of Kasaragod Patla and P Jayaprakash of Ponnangala – have come to the aid of the Malayalee patients who are dependent on medicines from Mangaluru. 

The three activists who are currently staying (in fact stranded amidst lockdown) in Mangaluru, are delivering life-saving medicines to patients in Kerala through Kerala fire servicemen and policemen posted at the Talapady border. 

Anoop Kumar says that took the initiative after a woman, Maria Augustine from Chemberi (Taliparamba) Nellikkutty, contacted him for a medicine. He managed to buy it from a medical store in the port city and handed it over to a Kerala fire serviceman at Talapady border. 

All three are activists of Communist Party of India (Marxist). After moving to Mangaluru, they set up ‘We Donate Charitable Society’ to donate blood. The activists say that they are ready to dispatch medicines from Mangaluru to any person in Kerala. Those Keralites who are in need of medicines from may contact: 888471344 - Anoop, 9895135881 - Jayaprakash

Mangaluru, Apr 15: A 27-year-old man, who died of breathing problem at Banglagudda in Surathkal, has tested negative for COVID-19.

The entire area was panic-stricken following his death on Tuesday evening. Suspecting COVID-19, his throat swab samples were collected, said Mangaluru North MLA Dr Y Bharath Shetty. Now the test has proved he was negative for coronavirus.

The youth had collapsed suddenly on Tuesday evening and was rushed to a hospital where the doctors declared him brought dead.