Bank Of Baroda Yet To Receive BR Shetty's $15 Billion Lawsuit Papers, Says Allegations Remain Untested

Mumbai: Bank of Baroda on Thursday, October 29, clarified that it had not yet received the legal documents relating to the USD 15 billion lawsuit reportedly filed by businessman B.R. Shetty before the Bombay High Court.

The public sector lender said it would be inappropriate to respond to the allegations until the court papers were formally served and the matter was examined through the judicial process.

Bank Clarifies Position

In a stock exchange filing, Bank of Baroda said it had received inquiries about interim applications reportedly filed by Shetty in connection with the lawsuit.

The lender referred to its earlier disclosure dated October 14, when it had confirmed that the lawsuit papers had not been served on it.

The bank made it clear that it had still not received either the original suit or the interim applications mentioned in the latest inquiries.

Allegations Remain Untested

Bank of Baroda maintained that it could not publicly address allegations contained in legal proceedings without first receiving the relevant documents.

The lender said information available on the Bombay High Court's website suggested that the lawsuit and interim applications were awaiting scrutiny or registration.

It emphasised that the allegations remained untested and would have to be examined by the court in accordance with the law.

Bank Questions Timing

The bank also raised concerns over the timing of information being circulated about the legal proceedings.

It alleged that details of the lawsuit and interim applications appeared to have been selectively shared just ahead of its quarterly financial results announcement.

According to the lender, the information appeared to have been disseminated with an improper intention.

Bank of Baroda said it would take appropriate steps concerning the circulation of such information.

What Is The Lawsuit?

The reported USD 15 billion lawsuit by B.R. Shetty, founder of NMC Healthcare and UAE Exchange, reportedly names Bank of Baroda and 25 others as defendants.

The case reportedly involves allegations of financial irregularities, disputed guarantees, diversion of funds and damage to Shetty's reputation.

It also reportedly questions lending decisions and banking transactions involving companies associated with the businessman.

However, these remain allegations and have not been established before a court.

Bank's Next Move

In its October 14 filing, Bank of Baroda had stated that it would defend the lawsuit and take necessary steps to safeguard its interests if formally served.

As of October 29, the lender reiterated that it had received neither the lawsuit papers nor the interim applications.