Dubai court issues worldwide freezing order on BR Shetty’s assets
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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 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.
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Surat LS candidate Nilesh Kumbhani whose nomination form was rejected suspended from Congress
Ahmedabad, Apr 25: The Gujarat Congress on Friday suspended from the party for six years its Surat Lok Sabha candidate Nilesh Kumbhani, whose nomination form was rejected over discrepancies leading to the BJP's Mukesh Dalal getting elected unopposed.
A statement from the Congress said the party's disciplinary committee decided to suspend Kumbhani after thorough discussion, adding it had come to the conclusion that the nomination form was rejected due to gross negligence on his part or "in connivance with the BJP".
"To be fair to you we have given time to you to explain your case but instead of coming before the party disciplinary committee you have gone incommunicado. After your form was rejected by the authorities, BJP went ahead and got form of other eight candidates withdrawn. This has deprived people of Surat their voting rights," the Congress disciplinary committee headed by Balu Patel said.
"People of Surat and party workers have become very angry due to your action and are expressing their anger in different ways. The Congress party has decided to suspend you for six years from the party," the press note said.
Kumbhani's nomination form was rejected on April 21 after his three proposers submitted affidavits to the district returning officer claiming the signatures on the document was not theirs.
The nomination form of Suresh Padsala, the Congress' substitute candidate from Surat, was also invalidated on the same grounds.
In his order, Returning Officer Sourabh Pardhi said the three nomination forms submitted by Kumbhani and Padsala were rejected after prima facie discrepancy was found in the signatures of the proposers and they did not appear to be genuine.
Kumbhani, a former corporator from Surat, had unsuccessfully fought the 2022 Assembly polls from Kamrej there.
The Bharatiya Janata Party's Mukesh Dalal was elected unopposed from Surat Lok Sabha constituency on April 22 after all other nominees, including one from BSP, withdrew from the fray one by one on the last day of withdrawing papers.
