UAE court issues worldwide freezing order on BR Shetty’s assets

News Network
July 25, 2020

Dubai, Jul 25: The founder of NMC Health, BR Shetty, has had a worldwide freezing order placed on his assets at the request of a lender that claims he has defaulted on a loan of more than $8 million (Dh29.4m).

The order was granted to Credit Europe Bank (Dubai) last month ahead of a claim filed at the DIFC Courts against Mr Shetty, New Medical Centre Trading and NMC Healthcare.

The lender said in its claim they “are jointly and severally liable” for the repayment of money initially secured through a credit agreement in December 2013 and renegotiated in December last year. Credit Europe Bank is an Amsterdam-headquartered institution specialising in trade and commodities finance with operations in nine countries.

The credit agreement was guaranteed by two security cheques which the bank said in its claim were signed by Mr Shetty – one drawn on his personal account and another on the account of New Medical Centre Trading – that have been "dishonoured upon presentation due to insufficient funds".

The bank claimed Mr Shetty “has now fled the jurisdiction of the UAE to India” and that there was a risk of his “substantial” assets in the Emirates being dissipated.

The assets frozen include properties in Abu Dhabi and Dubai, as well as shares in NMC Health, Finablr, BRS Investment Holdings and other companies. It allows for up to $7,000 per week to be spent on “ordinary living expenses and reasonable sum[s] on legal advice and representation”, a DIFC Courts document granting the freezing order shows.

Credit Europe Bank declined to comment when contacted by The National, stating it does not comment on ongoing litigation proceedings. Representatives for Mr Shetty and for NMC Healthcare, which is now being run by administrators Alvarez & Marsal, also declined to comment.

NMC Healthcare was founded by Mr Shetty in 1975 and grew from a single hospital into the UAE’s biggest privately-owned healthcare operator, which employed 2,000 doctors and 20,000 other staff. The company was listed on the London stock exchange and at its peak was valued at £8.58 billion (Dh40bn). However, its shares slumped after short seller Muddy Waters Research issued a report in December 2019 alleging the company had inflated its cash balances, overpaid for assets and understated its debts. This led to a string of damaging revelations by the company, including the fact that its debt was materially higher – at $6.6bn – than the $2.1bn on its balance sheet. NMC Healthcare was placed into administration in April by its biggest creditor, Abu Dhabi Commercial Bank, but its UAE businesses continue to trade as a going concern.

Mr Shetty said in a statement issued in April that he has been a victim of fraud committed by "a small group of current and former executives” at companies owned by him. He said bank accounts were created in his name and transactions were made without his knowledge, and that loans, cheques and bank transfers were also fraudulently guaranteed in his name using his forged signature.

In response to the claim filed by Credit Europe Bank (Dubai) at the DIFC Courts, Mr Shetty says he did not personally guarantee loans made to NMC Trading or NMC Healthcare and that the signatures used on cheques guaranteeing the loans are forgeries. His defence cites the opinion of “Dr Al Bah, an independent, experienced and qualified forensic document examiner”, that someone other than Mr Shetty signed the lending agreements and cheques.

An application by NMC Trading and NMC Healthcare to the DIFC Courts to have the claim against it heard in private for fear of triggering claims by other lenders – the group owes money to around 80 local, regional and international lenders – was dismissed, given that the appointment of administrators at the group and allegations of fraud at the company are already in the public domain.

Both companies have indicated to DIFC Courts that they intend to contest the claim against them.

Comments

UAE Muslim
 - 
Sunday, 26 Jul 2020

give money to RSS now to kill muslim....GOD will turn the table for moran like you BR,...shamed of tulu guy cheated the UAE govennment...not root in hell

ANONYMOUS
 - 
Saturday, 25 Jul 2020

amount should be 8 billion dollar and not 8 million dollar

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Media Release
November 14,2024

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Riyadh: The Jam'iyyatul Falah (JF) Riyadh Unit held its Annual General Body Meeting at Loaloah Istirah in Riyadh on Thursday, October 3, 2024.

The gathering commenced with Master Ayman reciting verses from the Holy Quran, setting a solemn tone for the event. Br. Haneef Bardila warmly welcomed attendees, including JF Life Members, Office Bearers from various organizations, and guests, and extended his congratulations to all present.

During the meeting, Br. Muhammad Ashfaq, President, delivered the Annual Report, highlighting the unit's achievements, while Treasurer Br. Nazeer Ahmed presented the Annual Financial Report.

Br. Ashfaq updated members on the ongoing efforts of Jam'iyyatul Falah in the Dakshina Kannada and Udupi districts for the year 2023-2024. Expressing gratitude for the support of the members and the committee, he encouraged the youth to join JF, emphasizing the importance of continuing the mission initiated by their elders 36 years ago.

The primary guest, Br. Yasin Baig, inspired the audience with a message underscoring the significance of service. He encouraged everyone to heed the Prophet's (pbuh) words: “Take advantage of five before five: your youth before your old age, your health before your illness, your wealth before your poverty, your free time before you become busy, and your life before your death.” He also spoke about the responsibility and blessing of serving the community through Jam'iyyatul Falah, stressing the promise of rewards in both this life and the hereafter.

Following his address, Br. Ashfaq Ahmed (President) formally dissolved the current committee and entrusted Br. Abdul Hameed and Br. Fazlur Rehman with the election process. A new Executive Committee was then formed for the 2024-2025 term, with Br. Salman Noor elected as the President, Br. Abubaker Irfan as General Secretary, and Br. Nazeer Ahmed continuing as Treasurer. Additionally, 26 other members were appointed to the Executive Committee.

The evening concluded with a dinner for all participants, and Br. Haneef congratulated the newly formed JF Riyadh Executive Committee and all attendees for their contribution to the event's success.

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Office Bearers Elected for the 2024-2025 Term

President: Salman Noor

Vice President: Fazlur Rehman

General Secretary: Abubaker Irfan Sheikh

Joint Secretary: Irshad Moideen

Treasurer: Nazeer Ahmed

Joint Treasurer: Akhil Ganjimutt

Auditor: Haneef Bardila

Advisors: Sheikh GK, Abdul Hameed Wenz, Abdul Basheer Beary

NRCC Representatives: Mohammed Ashfaq, Akthar Shaikh

NRCC Rep. at JFCC: Parvez Ali

Sports Coordinators: Shareef Ahmed, Ayaz Ahmed, Mohammed Mahir, Sameen Gurukambla, Mohammed Gazali, Javed Khan

Event Coordinators: Abdul Hameed Nazeer, Sharief Thokur, Sadhik Mohammed

Media Coordinator: Parveez Ahmed

Committee Members: Sadique Moideen, Sayed Sameer, Mohammed Khizer, Mohammed Sarfaraz, Fareed Mohammed, Suhail Ahmed

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News Network
November 21,2024

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Prominent NRI community leader SM Syed Khalilur Rehman, fondly known as CA Khalil, passed away in Dubai on Thursday at the age of 86 after a brief illness.

Khalil had been admitted to Aster Hospital in Mankhool on Tuesday after experiencing severe leg weakness. Despite the best efforts of the medical team, he succumbed to a double heart attack that worsened his condition, his son Rais Ahmed confirmed.

The news of his passing has sent waves of grief across communities, particularly in his hometown of Bhatkal, Karnataka, where he was a celebrated figure. Tributes have been pouring in on social media, highlighting his significant contributions to international trade, social service, and education.

A Legacy of Leadership and Service

A chartered accountant by profession, Khalil was a founding member of the Dubai chapter of the Institute of Chartered Accountants of India (ICAI), where he served as chairman from 1987 to 1994. His illustrious career included key leadership roles, such as general manager of Khaleej Times, group executive director of the Ilyas and Mustafa Galadari Group, and vice-chairman of the Jashanmal Group of Companies.

He also chaired Maadhyama Communications and Sahil Online, a web-based news platform, and was a director and trustee of several media companies and charitable organisations in Dubai and India.

A Champion for Education and Philanthropy

Khalil’s impact extended far beyond his professional achievements. As president and general secretary of Anjuman Hami-e-Muslimeen, he played a pivotal role in the development of educational institutions, including schools and colleges in Bhatkal and surrounding areas. His dedication to social upliftment earned him recognition from the Government of Karnataka, which honoured him with a prestigious award for his philanthropic contributions.

A Life Celebrated

The Bhatkal Muslim Khaleej Council (BMKC) recently released a documentary celebrating Khalil’s remarkable life and service to the community—a testament to his enduring legacy.

CA Khalil is survived by his family and countless admirers across the globe. His passing marks the end of an era for Indian expatriates in the UAE and beyond, leaving behind a legacy of leadership, generosity, and commitment to community service.

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