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BR Shetty, the founder of NMC Health, a UAE-based healthcare company that collapsed in 2020 with over $6.6 billion in hidden debt, has been ordered by a Dubai court to pay $33.2 million to Bank of Baroda, an Indian government-owned bank. The court also added legal costs, totaling $344,000, with interest accruing if unpaid within 14 days. Shetty has denied any wrongdoing and claimed he was a victim of fraud within NMC.
NMC Health’s collapse was a major financial scandal, exposing over $6.6 billion in hidden debt across 75 debt facilities from more than 80 financial institutions. The company, which was the UAE’s largest private healthcare provider, was placed into administration in 2020, triggering multiple lawsuits and regulatory investigations in the UAE, India, and the UK.
Shetty’s denial of wrongdoing comes as NMC Health is still recovering from its collapse. The company emerged from administration in 2022 after a $4 billion debt restructuring led by Abu Dhabi Commercial Bank. There are ongoing discussions about the potential acquisition of NMC Healthcare by PureHealth Holding, a UAE-based healthcare group backed by the Abu Dhabi sovereign wealth fund ADQ. PureHealth is considering various options, including a sale or initial public offering, after appointing Rothschild & Co as its financial adviser in June.
The court ruling is part of the ongoing legal fallout from NMC’s collapse, and Shetty’s liability for the debt owed to Bank of Baroda is a significant development in the case. The exact details of the fraud alleged within NMC are still unclear, but Shetty’s claim of being a victim of fraud suggests that he may have been unaware of the company’s true financial situation before its collapse. The case continues to unfold, with Shetty facing financial repercussions for his alleged role in NMC’s collapse.