Bank of Baroda Initiates Recovery Process Against UAE Businessman BR Shetty for ₹2,800 Crore
Bank of Baroda is pursuing ₹2,800 crore from UAEs BR Shetty amid ongoing legal disputes and fraud allegations.
New Delhi, October 14 (Daily Kiran) : Bank of Baroda announced on Wednesday that it is actively working to recover ₹2,800 crore from UAE businessman BR Shetty. The bank has secured several court orders in both India and the UAE as part of this effort.
This announcement comes in the wake of Shetty filing a case against the bank in the Bombay High Court, where he is seeking $15 billion in damages related to alleged fraud involving his companies. The public sector bank stated that it will vigorously defend its interests.
In a disclosure to the stock exchange, Bank of Baroda clarified that it has not received any formal lawsuit regarding Shetty’s claims. The bank emphasized that it cannot comment on allegations that have not yet been adjudicated in court. Once notified of any legal proceedings, the bank plans to assert its position and take necessary steps to safeguard its interests.
The bank also highlighted that the Karnataka High Court had previously barred Shetty from transferring or disposing of his assets in 2021. During proceedings at the National Company Law Tribunal, Shetty claimed he was bankrupt and unable to settle the bank’s dues.
Furthermore, the bank noted that Shetty had previously filed a similar lawsuit against it in New York’s Supreme Court, which was dismissed.
Shetty alleges that Bank of Baroda and several of its current and former employees facilitated a fraud that led to the collapse of NMC Healthcare, a major healthcare group operating in the Gulf region. Once the largest private healthcare company in the Gulf, NMC was placed under administration in 2020 following months of financial irregularities, revealing debts of $6.6 billion—significantly higher than the previously estimated $2.1 billion.
Bank of Baroda indicated that the matters reported in the media are part of ongoing proceedings in the Abu Dhabi Global Market (ADGM) court. This court is currently deliberating on charges of fraud and improper trading against Shetty and former NMC CEO Prashant Manghat.
The bank stated that the proceedings against it in the ADGM were halted following an agreement with the joint administrators of the NMC group. Until any court orders are issued, the bank sees no need to make provisions for potential losses.
