Corporate Grapevine     

Published: Dec 15, 2022
Updated: Dec 15, 2022

BOB V/S NMC: NMC Healthcare’s $ 4 bn ‘sickness’!

The administrator of NMC Healthcare, a Dubai-based hospital chain earlier owned by billionaire-turned-bankrupt BR Shetty, has filed legal claims in the United Kingdom and Abu Dhabi against Bank of Baroda, Shetty and former NMC executive Prasanth Manghat, with regard to the ongoing investigation into the financial fraud at the hospital. chain. This is a significant milestone in the work A&M have done as administrators on behalf of creditors since NMC was discovered to have more than $4 billion of previously undisclosed debts. These court proceedings are ongoing and investigators are trying to find out where the $4 billion has gone.

Shetty is a well-known industrialist from South India and earlier owned companies like UAE Exchange and Travelex. Shetty, who was non-executive chairman of NMC, blames its auditor EY and former CEO Manghat for the fiasco. NMC was listed on the London Stock Exchange and hence the court proceedings against him in the UK. Shetty is currently living in India and cannot leave the country as he is a defaulter of bank loans and BoB has issued a look-out notice against him which prevents him from flying overseas.

BoB has a huge exposure to Shetty companies from its overseas branches and is a big loser in the entire fiasco.

Interestingly, Shetty has sued BoB and EY in a New York court, saying the bank did not do proper due diligence and EY failed to audit it properly.