UAE court issues worldwide freezing order on BR Shetty’s assets

News Network
July 25, 2020

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

UAE Muslim
 - 
Sunday, 26 Jul 2020

give money to RSS now to kill muslim....GOD will turn the table for moran like you BR,...shamed of tulu guy cheated the UAE govennment...not root in hell

ANONYMOUS
 - 
Saturday, 25 Jul 2020

amount should be 8 billion dollar and not 8 million dollar

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News Network
April 23,2020

Bengaluru, Apr 22: Former Chief Minister and the Opposition Leader in the Karnataka Assembly Siddaramaiah appealed the state government not to discriminate the poor on political lines while distributing relief package to the COVID-19 affected people in the state.

He was speaking to newsmen after attending a grocery kits distribution programme, organised in Jayanagar Assembly constituency, which was represented by the Congress MLA and former minister Ramalinga Reddy.

Charging that there are complaints about the state government in discriminating the Congress MLAs represented constituencies in providing relief kits to distribute among the poorer sections in the society, he said that “there should not be no room for politics, while fighting the COVID-19 disease”.

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Agencies
February 25,2020

New Delhi, Nov 25: According to multiple media reports, at least 11 people were killed and around 150 injured in the large scale violence unleashed by the Sangh Parivar activists to suppress anti-CAA agitation in the capital of India.

Violence was reported from Jaffrabad, Chandbagh, Maujpur, Bhajanpura, Gokulpuri, Khajuri Khas, Kardampuri, Dayalpur and Hauz Rani and prohibitory orders were clamped in several areas of North East Delhi. 

The MHA said the situation was under control and paramilitary forces have been deployed in large numbers in trouble spots. The Gokulpuri tire market was set on fire. The violence has also led to the destruction of several crores worth of property. 

As tension smouldered in the national capital's northeast and the sun set over another restive day, violence cut a swathe through several localities, including Chand Bagh and Bhajanpura, with stones and other missiles hurled and shops set ablaze.

Rioters damaged two fire tenders in Gokulpuri and crowds raising incendiary slogans set on fire fruit carts, rickshaws and anything that came in their way in the epicentre of the trouble Maujpur and other places.

With US President Donald Trump also in the city, Delhi Police ramped up security. It fired teargas shells to disperse the rioters -- armed with stones, rods and even swords and many wearing helmets to protect themselves -- and was assisted by paramilitary personnel.

Streets were littered with mangled remains of vehicles, bricks and burnt tyres, mute testimony to the violence and bloodshed that took on a communal taint on Monday and injured about 180 people, including 48 police personnel.

According to GTB Hospital Medical Superintendent Sunil Kumar, six people were declared brought dead on Tuesday, taking the death toll in 11. At least 35 injured people were also taken to the hospital today.

"Fifty per cent of those injured have sustained bullet injuries," Kumar added.

As the violence continued unabated, police officials said the situation was under control and flag marches were conducted in Bhajanpura, Khajuri Khas and other places.

Union Home Minister Amit Shah convened a meeting with Delhi Lieutenant Governor Anil Baijal, Chief Minister Arvind Kejriwal, Delhi Police chief Amulya Patnaik and others to address the situation.

The meeting resolved that workers of political parties should join hands to restore peace and peace committees should be reactivated in all localities.

In scenes not seen in the national capital for decades, frenzied groups thrashed people on the road and vandalised vehicles.

The media also came under attack.

Akshay, a journalist with JK 24X7 News, received a bullet injury and was in a serious condition in hospital, and two reporters from NDTV were beaten and punched by rioters. Many other journalists were heckled and told to go back.

Schools were shut and fearful residents stayed indoors as restless crowds roamed the streets, seemingly unmindful of prohibitory orders restricting the assembly of more than four people imposed on Monday.

"There is hardly any police presence in the area. Rioters are running around threatening people, vandalising shops. Families need to be evacuated. We are unsafe in our own homes," said a resident of Maujpur, requesting anonymity.

Another added that this is the first time in 35 years -- possibly since the 1984 anti-Sikh riots -- that he has seen a situation such as this. "The area had always remained peaceful," he told PTI.

Trouble continued through the day.

Around 5 pm in Chand Bagh, for instance, security personnel were pelted with stones. They chased the mob, only to be attacked afresh with some people also armed with petrol bombs.

A few residents in Yamuna Vihar and Jaffrabad told PTI they had seen rioters with swords in their hands.

The 11 killed include Delhi Police head constable Ratan Lal. While Lal died of gunshot wounds, it is still not yet clear what killed the others or who they all were.

Among those killed was Vinod Kumar, a resident of Ghonda who was brought dead to the hospital and whose body is at the morgue of the Jag Parvesh Hospital.

Also killed was Mohammad Furkan from Kardampuri, near Jafrabad, who got married in 2014 and has two children. His brother, Mohammed Imran, overcome with grief, said they were both in the handicrafts business.

"He had gone to get some food for his children. Someone told me he had been shot. I couldn't believe it as I had met him barely an hour earlier. I kept calling him... I then rushed to GTB Hospital where I was told that he is dead," he told reporters, sobbing inconsolably outside the hospital.

Imran blamed BJP leader Kapil Mishra's tweet, giving Delhi Police an ultimatum to clear the streets of protesters and saying people would be quiet only until Trump is in India.

"Before that everything was peaceful," he said.

One person seen brandishing a gun before police on Monday was identified as Shah Rukh and been arrested yet. Police said 11 FIRs have been filed.

Kejriwal, who held a meeting with senior officials and MLAs of all parties to discuss the situation, asked people to refrain from violence and said all issues can be dealt with through dialogue.

"Stop this madness," he said after visiting the injured in GTB Hospital.

"I have met the people who were injured, also met some people who sustained bullet injuries. The biggest concern is to stop the violence. I appeal to everyone to stop the violence," he said.

Five stations on the Delhi Metro's Pink Line were closed for the second consecutive day on Tuesday in the wake of the trouble.

Deputy Commissioner of Police (Shahdara) Amit Sharma underwent an operation on Monday night for the head injury sustained during the clashes.

Comments

Angry Indian
 - 
Wednesday, 26 Feb 2020

pakistan is very very happy to see this because we indian MARONS fighting each other as a HINDu & MUSLIM destroying our country with our own hand..

great india..jai hind

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News Network
February 13,2020

Bengaluru, Feb 13: 'Karnataka Bandh' call given by various Kannada organisation demanding implementation of Sarojini Mahashi report for ensuring job reservation to local people (Kannadigas) in the Private and government organisation, including industries, evoked mixed response in the State on Thursday.

The Bandh call was given by the “Karnataka Sanghatanegala Okkoota”, comprising a few factions of “Karnataka Rakshana Vedike” (KRV) and was backed by Ola-Uber Cab Drivers’ Association, a few auto unions, farmers’ associations, street vendors association, trade unions and transporters’ associations.

Meanwhile, Airport Taxi Services also supported the Bandh which forced flight passengers to find it difficult in finding the transport for reaching their destination in time. Fortunately, BMTC bus services at Kempegowda International Airport (KIA) was available at the Airport.

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