B R Shetty Files $15 Billion Lawsuit Against Bank of Baroda

B R Shetty, the founder of NMC Healthcare, has initiated legal proceedings in the Bombay High Court, demanding $15 billion in damages from the Bank of Baroda (BoB) and 25 other defendants. The lawsuit alleges that the bank, alongside former executives of NMC, facilitated the diversion of funds, concealed financial liabilities, and pursued Shetty based on guarantees that bore forged signatures.

In his lawsuit, Shetty is seeking $5 billion each for direct and consequential damages from the defendants collectively, along with an additional $5 billion from BoB for reputational harm and loss of goodwill. He is also requesting an annual interest rate of 18% on the claimed amounts.

The defendants named in the suit include BoB, ten of its officials, and former executives from NMC and UAE Exchange/Finablr, among others. Shetty claims that these individuals hold assets acquired through the misappropriated funds. An inquiry sent to Bank of Baroda regarding the lawsuit has not yet received a response.

Shetty's allegations date back to 2012 when he relinquished control of the group and stepped down as CEO in March 2017. He asserts that he only learned in early 2020 that he was still listed as NMC's chairman, prompting his resignation. The lawsuit claims that former executives used forged documents to mislead transactions, implicating Shetty in fraudulent activities.

The lawsuit also highlights that BoB allegedly ignored multiple anti-money laundering alerts, granted credit without sufficient security, and concealed its lending exposure from auditors. Furthermore, it accuses certain bank officials of accepting gifts and failing to heed warning signs. Notably, discrepancies in balance confirmations prepared for auditor EY are cited, with only 11 out of 15 confirmations reaching the auditor. Shetty contests BoB's actions regarding guarantees attributed to him, asserting that the signatures were forged and that the bank continued to act on them despite knowledge of the concealed liabilities.

In July, Bank of Baroda had previously settled litigation related to NMC Health's collapse by agreeing to pay $600 million, resolving years of legal disputes linked to one of the largest corporate failures in West Asia. This settlement concluded claims against the bank without any admission of liability. The collapse of NMC Health, once the largest private healthcare provider in the Gulf, was precipitated by the revelation of billions in undisclosed debt, leading to administrative proceedings in Abu Dhabi and England against Shetty and others under insolvency laws.