DUBAI: The legal troubles for B.R. Shetty, the founder of the collapsed NMC Healthcare empire, intensified this week after the Dubai International Financial Centre (DIFC) Court ordered him to pay $46 million (approximately ₹380 Crore) to the State Bank of India (SBI).
The judgment, delivered on October 8 by Justice Andrew Moran, found Shetty personally liable for a loan guarantee connected to NMC Healthcare. Crucially, the judge harshly criticised Shetty’s testimony, describing it as an “incredible parade of lies” and his evidence as “incoherent and nonsensical.”
Key Details of the Ruling
- Creditor: State Bank of India (SBI), DIFC Branch.
- Amount Awarded: $45,997,554.59, which includes interest accrued up to the judgment date. Additional interest will accrue at 9% per annum until the payment is made.
- The Dispute: The case revolved around whether Shetty had signed a personal guarantee in December 2018 for a $50 million loan extended by SBI to NMC Healthcare.
- The Defence: Shetty vehemently denied signing the guarantee, claiming his signature was forged and that he had never met the bank’s CEO who witnessed the signing.
- The Court’s Finding: The court rejected Shetty’s forgery claim. The judge noted that Shetty had been “fully aware of and had admitted he had signed the Personal Guarantee back in May 2020.” The ruling was heavily supported by the testimony of the bank’s CEO, meeting records, and expert handwriting analysis that found “very strong evidence” the signatures belonged to Shetty.
The NMC Collapse and Ongoing Legal Battles
This ruling is one of several significant judgments against the disgraced former billionaire as a result of the NMC Healthcare scandal.
- The Background: NMC Healthcare, once the largest private healthcare operator in the UAE, was placed into administration in April 2020 after the discovery of over $4 billion in previously hidden debt.
- Previous Rulings: This is not the first major judgment against Shetty in the DIFC Courts. He has also been ordered to pay:
- Approximately $106 million to ICICI Bank for personal guarantees on NMC loans.
- Millions of dollars to other lenders, including the Bank of Baroda.
- Shetty’s Stance: Shetty has consistently denied wrongdoing, maintaining that he was a victim of a sophisticated fraud committed by former executives who allegedly forged his signature, arranged illegal credit facilities, and siphoned off funds. He is currently based in India and is fighting multiple lawsuits globally, including a New York lawsuit where he sought $8 billion in damages from former executives, auditors, and banks, which was recently dismissed on jurisdictional grounds.
The ruling by the DIFC Court highlights the ongoing and complex legal fallout from one of the largest corporate scandals involving an Indian entrepreneur in the UAE.
