Bank of Baroda Pursues Recovery of Rs 2,800 Crore from UAE Businessman B.R. Shetty Amid $15 Billion Lawsuit

Bank of Baroda has said it will defend its interests against a $15 billion damages lawsuit filed by UAE-based businessman B.R. Shetty, while continuing recovery proceedings against him over outstanding dues of Rs 2,800 crore in India and the United Arab Emirates.

In a stock exchange filing on Wednesday, the public sector lender said it had not yet been served with the suit filed by Shetty in the Bombay High Court and could not comment on its contents before examining the pleadings. The bank said it would contest the case firmly and take all necessary steps to protect its interests once formally served.

Shetty, the founder of NMC Health, has accused the bank and several of its current and former employees of helping facilitate an alleged fraud involving companies linked to the group, which ultimately collapsed.

Bank of Baroda said it was pursuing recovery and enforcement proceedings against Shetty in India and the UAE for dues amounting to Rs 2,800 crore. It added that it had secured several decrees against him.

According to the bank, the Karnataka High Court restrained Shetty from dealing with or alienating his assets in 2021. In subsequent proceedings before the National Company Law Tribunal, Shetty had claimed that he was insolvent and unable to meet his obligations to the lender.

The bank also disclosed that a similar lawsuit filed by Shetty against it before the Supreme Court of the State of New York had been dismissed.

NMC Health, which was the Gulf region’s largest private healthcare provider at the time, was placed under administration in 2020 following months of financial mismanagement. The group disclosed debts of $6.6 billion, substantially higher than earlier estimates of $2.1 billion.

Bank of Baroda said matters reported in the media were also connected to proceedings before the Abu Dhabi Global Market (ADGM) Court. It stated that judgment had been reserved against Shetty and former NMC Healthcare CEO Prashant Manghat in proceedings involving allegations of fraud, wrongful trading and fraudulent trading.

The bank clarified that proceedings against it before the ADGM Court had been discontinued following a settlement with the joint administrators of the NMC Group.

It further said no immediate liability would arise for the bank unless an order was passed or it became necessary to make a provision for potential damages.

Meanwhile, Bank of Baroda shares fell 2.6 per cent to Rs 231.40 during intraday trading on Wednesday amid developments surrounding the legal dispute.