Manama: A Dubai court has issued an order to freeze the worldwide assets of NMC founder and Indian business tycoon BR Shetty at the request of a Dutch bank. The freezing order is applicable to Shetty’s assets in all countries, according to reports.
A freezing order (also called injunction) may be the most serious thing to face any limited company and prevents the sale of any assets of the company.
The court order complicates attempts by NMC’s administrators to keep the healthcare provider solvent during the pandemic. The assets that have been frozen include properties in Abu Dhabi and Dubai, as well as stakes in NMC Health, Finablr, BRS Investment Holdings and other companies.
The freezing order, made public months after it was implemented, called on Mr Shetty to detail all his worldwide assets valued at more than $10,000. The order allows him to spend $7,000 a week on living expenses and a reasonable sum on legal advice and representation, Financial Times reported.
The freezing order was issued by Dubai International Financial Centre (DIFC) at the request of Credit Europe Bank's Dubai branch. Credit Europe Bank is an Amsterdam-headquartered institution specialising in trade and commodities finance with operations in nine countries.
The lender said in its claim that 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.
The bank claimed that Mr Shetty had fled the jurisdiction of the UAE to India and that there was a risk of his substantial assets in the Emirates being dissipated.
Mr. Shetty argued that he was not liable to repay as his signature in the lending agreements was forged and he never gave a personal guarantee or security cheques, according to the court documents.
The Credit Europe Bank's Dubai branch had filed a case against NMC and former Chairman R Shetty due to non-payment of a $8.4 million (Dh31 million) loan facilitated in 2013. It said roughly $25m in security cheques issued by Mr Shetty bounced.
The DIFC Courts’ injunction was issued in April, which ordered Mr Shetty not to sell assets up to the value of $8.4 million without lender’s approval, the report read.
The NMC was placed under administration in April upon the request of UAE lenders for defaulting on the payment. The UAE banks have around Dh8 billion exposure to NMC Health. But the amount rises to Dh9.5 billion if debt owed to BR Shetty's Finablr group is included.
On April 27, the Central Bank of the UAE (CBUAE) instructed banks operating in the country to freeze all bank accounts of BR Shetty, and his family, and companies owned by him.
The company has debts of several crores in various banks, sources said. NMC recently disclosed a debt of $6.6 billion.
Shetty was reportedly involved in a serious financial scandal in the UK. The British Supreme Court has decided to appoint a judicial guard at NMC on April 9 at the request of Abu Dhabi Commercial Bank.
He blamed his former executives for the fraud and mismanagement that led to the downfall of the NMC. He had earlier maintained that he can sell other assets which are free of debt or other financial liability.
Shetty is the founder and former chairman of NMC Healthcare Group. BR Shetty left the UAE amid the cases and is living in India. He is facing a string of charges in Indian courts, including a claim for repayment from the Bank of Baroda.
Abu Dhabi Commercial Bank has also filed a criminal case against several parties it claims were involved in the alleged fraud.
Shetty is a native of Udupi district in Karnataka.
