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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'Brand Bharat' is statement of authenticity; of being Vishwa Bandhu, says EAM
New Delhi (PTI): External Affairs Minister S Jaishankar on Saturday extolled the idea of 'Brand Bharat' and said it is "statement of authenticity" in representation, articulation or beliefs, and equally a message that "we are now more comfortable in our own skin".
In a virtual address at India Ideas Conclave, he also underlined that it is also the "brand of Vishwa Bandhu" as on the big stage, a "multi-vector approach" engages the Quad and BRICS, Russia and Ukraine, Israel and Iran and the Global North and Global South.
Nations, like people, enterprises or services, have a reputation. When deeply entrenched into consciousness and easily recognisable, that becomes a brand. Obviously, it is related to the merits of the product and its track record, he said.
"When it comes to a country, the national brand is obviously a fusion and aggregation of different facets of its life. On the global stage, it is much more an integrated positioning of a multiple endeavors. We, in the world of diplomacy, have that responsibility. My thoughts today are about how we discharge that for an India that is more Bharat," Jaishankar said.
In his address, the external affairs minister encapsulated the journey of India from freedom struggle to gaining independence and the course the country took in the succeeding decades.
"Our initial decades after independence saw us struggling with the brand challenge. Given the ground situation, this was not unsurprising. A society recovering from two centuries of colonialism obviously had to painstakingly build itself up, creating new capabilities, institutions and practices," he said.
But at the end of the day, India entered the next century "intact as a polity, energetic as an economy and optimistic as a society".
"None of that could have been taken for granted and some, in fact, failed to make it," he underlined.
The Union minister, who virtually addressed the conclave hosted by India Foundation, lamented that earlier the country, at the global level, was "seen as sizeable player about whom there was limited expectation", and said, however, the last decade has seen a "big shift" in that regard.
"Economically, we are now perceived as much easier to do business. The transformation underway in infrastructure is also increasingly appreciated.
Whether it is the airports, metros, highways or railways, the achievements of the last decade stand out even by global standards. Perhaps, nothing has been more impactful than our embrace of digital technologies," he added.
Jaishankar then went on to expound what is 'Brand Bharat'.
"Bharat is a statement of authenticity, be it in representation, articulation or beliefs. Even our economic energies required a connotation of Atmanirbharta in that background," he asserted.
"It is equally a message that we are now more comfortable in our own skin, drawing on our own past, fashioning our own lexicon and advancing our own ideas," the Union minister added.
He said while recognising these developments, let us also realise that "we are not just one more country".
"Our history, tradition, culture and heritage makes us stand out. We are one of the rare ancient civilisations that have made a successful transition to a nation state. In the past, when our overall standing was less, perhaps this did not count for that much. But when juxtaposed with our achievements in so many fields, it now assumes very different connotation," Jaishankar added.
It is in this context that "we should reflect on Brand Bharat. The very term captures the civilisational aspect, while underlining how much more rooted we have become", he said.
"In a world asserting its independence from a globalised elite, it is an effort to engage the world more on our terms. The formulation of standing on the two legs of technology and tradition is one effective way of expressing Brand Bharat," Jaishankar said.
Coming from the domain of diplomacy, India naturally seek to advance that brand in more specific terms. That means defining how Bharat approaches the world, he said.
"There are a range of answers. The Global South sees a powerful advocate and the driver of Vaccine Maitri. Neighbours recognise a generous and non-reciprocal partner who stood by them during Covid, financial meltdowns or natural disasters. Democracies appreciate a confident partner whose choice has helped universalise their shared attributes," the minister asserted.
"The immediate region and beyond value an emerging 'first responder' and contributor to global goods. And on the big stage, a multi-vector approach engages the Quad and BRICS, Russia and Ukraine, Israel and Iran and the Global North and South. This is the brand of Vishwa Bandhu," he said.
