Mumbai: Indian-origin businessman BR Shetty, founder of UAE-based NMC Healthcare, has returned to the spotlight after reportedly filing a USD 15 billion lawsuit against Bank of Baroda and 25 other defendants.
The legal battle has revived questions surrounding the dramatic collapse of his healthcare and financial services empire, once valued at billions of dollars.
Shetty alleges that unauthorised financial transactions, forged documents and misconduct by former executives contributed to the downfall of his businesses.
Who Is BR Shetty?
Bavaguthu Raghuram Shetty, popularly known as BR Shetty, was born on August 1, 1942, in Karnataka. A trained pharmacist, he moved to Abu Dhabi in 1973 seeking business opportunities.
He initially worked as a medical representative before establishing New Medical Centre (NMC) in 1975.
Over the following decades, Shetty transformed the venture into one of the UAE's major private healthcare groups, operating hospitals, clinics and medical facilities.
How Did He Build His Business Empire?
Shetty expanded beyond healthcare into foreign exchange, international money transfers and financial services.
He founded UAE Exchange, which became a prominent remittance business serving expatriates across several countries.
His business interests later included Finablr, a financial services holding company.
NMC Health was listed on the London Stock Exchange and eventually entered the FTSE 100 index.
Shetty also received India's Padma Shri award in 2009 for his contributions.
What Triggered NMC Healthcare's Collapse?
The crisis began in December 2019 when US-based investment research firm Muddy Waters questioned NMC Health's financial reporting and corporate governance.
The allegations triggered scrutiny of the company's accounts and financial obligations.
In 2020, NMC Health entered administration after billions of dollars in previously undisclosed debt emerged.
The developments severely damaged Shetty's business empire and raised questions about financial oversight.
Why Has Shetty Sued Bank Of Baroda?
Shetty alleges that former executives misused his identity, forged signatures and arranged financial transactions without his knowledge or approval.
He further claims that Bank of Baroda officials facilitated questionable transactions and accepted personal guarantees that he had not authorised.
His allegations also concern failures to act on suspected money-laundering warning signs.
However, these claims remain allegations and have not been established as findings of wrongdoing.
What Happens Next?
The USD 15 billion lawsuit seeks damages connected to the alleged financial misconduct and collapse of Shetty's businesses.
The proceedings could bring renewed scrutiny to banking practices, corporate governance and accountability.
The outcome remains uncertain, with the allegations subject to judicial examination and responses from the defendants.
Disclaimer: This report discusses allegations in ongoing legal proceedings. No wrongdoing is established unless confirmed through a competent court's final judgment.
