Once a prominent figure among the UAE’s Indian entrepreneurs, B.R. Shetty, the founder of the now-defunct NMC Healthcare, has been ordered by the Dubai International Financial Centre (DIFC) Courts to pay $45.99 million (Dh168.7 million) to the State Bank of India (DIFC Branch). This decision came after it was found that he lied under oath about signing a personal guarantee for a $50 million (Dh183.5 million) loan.
On October 8, Justice Andrew Moran issued a judgment, available on the DIFC Court’s website, describing Shetty’s testimony as “an incredible parade of lies.” He noted that Shetty’s evidence during the September 29 hearing was “incoherent and nonsensical.” The court found “overwhelming witness and documentary evidence” showing Shetty had indeed signed the guarantee in December 2018, making him personally liable for the debt.
The ruling mandates Shetty to pay $45,997,554.59 (Dh168.8 million), including interest up to the ruling date, with post-judgment interest at nine per cent per year, accumulating approximately $11,341 (Dh41,645) daily until fully settled.
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The case centered on whether Shetty personally guaranteed a $50 million (Dh183.5 million) loan from the State Bank of India to NMC Healthcare in December 2018. Shetty denied meeting the bank’s CEO or signing any documents, alleging his signature was forged. However, the court saw evidence contradicting his claims, including photos, meeting notes, and an email from Shetty’s account.
The bank’s former CEO, Anantha Shenoy, testified that he visited NMC’s Abu Dhabi offices on December 25, 2018, where Shetty signed the guarantee in his presence. He also presented photos taken weeks later at NMC’s offices, showing Shetty with senior bank officials, seemingly thanking them for the facility. Shetty, when shown the pictures, claimed the officials must have “just come and stood there” while he posed with the chairman.
Bizarre Claims
The court dismissed his explanations, labeling them “false and discreditable manoeuvring to evade liability.” It also rejected Shetty’s “bizarre” claim that NMC employees once held a contest to mimic his signature, offering a “prize for the winner.”
Handwriting experts confirmed that the signatures on the guarantee, sanction letter, and related documents matched Shetty’s writing. The judge described the evidence against him as “overwhelming.”
This verdict is another blow to the 83-year-old Indian billionaire, once a symbol of the UAE’s successful Indian business community. Shetty founded NMC Healthcare in the mid-1970s, expanding it into the largest private healthcare provider in the country, alongside ventures like UAE Exchange and Finablr.
At its height, NMC was listed on the London Stock Exchange with a valuation exceeding $10 billion (Dh36.7 billion). However, it dramatically collapsed in 2020 after undisclosed debts of over $4 billion (Dh14.68 billion) were discovered, prompting investigations worldwide.
In February 2020, Shetty resigned as joint non-executive chairman of NMC. The company was subsequently placed under administration in Abu Dhabi, and Shetty left the UAE for India, citing health issues.
