NMC founder BR Shetty alleges fraud by Bank of Baroda; lender pledges to contest lawsuit if served.
Dubai: BR Shetty, founder of NMC Healthcare and UAE Exchange, has filed a $15 billion lawsuit against Bank of Baroda and 25 other defendants, accusing them of facilitating alleged financial fraud involving his companies.
Shetty claims the alleged misconduct resulted in substantial repayment demands linked to financial guarantees that he maintains he never signed.
According to Reuters, which reviewed the court documents, the lawsuit was filed in the Bombay High Court on Tuesday. The allegations include forged signatures, questionable fund transfers and repeated money-laundering warnings that Shetty claims the bank failed to address.
Responding to the allegations on Wednesday, Bank of Baroda said it had not yet received formal notice of the lawsuit and stressed that the claims had not been examined or established in court.
The Indian lender said it would strongly contest the case if served, while continuing its efforts to recover approximately Rs28 billion in outstanding dues from Shetty.
The legal action marks another development in the financial crisis surrounding NMC Healthcare, once the Gulf region’s largest private healthcare provider.
NMC Health entered administration in 2020 after revealing debts of $6.6 billion, significantly higher than the previously estimated $2.1 billion, according to Reuters.
Alleged forged signatures at the heart of dispute
A central issue in BR Shetty’s lawsuit involves personal guarantees and financial documents that he claims contain forged signatures. According to the court filing, Shetty alleges that Bank of Baroda used these documents to pursue repayment claims against him without adequately verifying their authenticity.
Personal guarantees legally obligate individuals to repay a borrower’s outstanding debt if the borrower defaults. The dispute therefore centres on whether Shetty genuinely authorised the financial commitments that could put his personal assets at risk.
Shetty has also questioned the legitimacy of several banking instructions and fund transfers, alleging that certain transactions were carried out without his consent.
As part of the legal proceedings, he has requested that the court direct the disclosure of transaction instructions, account-opening records, customer verification documents and information identifying bank officials responsible for processing or approving the disputed transfers.
The lawsuit names 26 defendants, including Bank of Baroda, 10 bank officials, former NMC executives Prasanth Manghat and Promoth Manghat, their associates, and two India-based companies, according to the filing.
Claims of irregular financial transactions
In his court submission, Shetty stated that Bank of Baroda acted as the NMC group’s primary banking partner until approximately 2019.
He alleges that the lender’s involvement extended beyond routine banking services, claiming it helped facilitate the movement of funds through NMC group companies and entities portrayed as independent suppliers.
The allegations form part of Shetty’s broader legal challenge over disputed financial transactions and liabilities linked to his former business operations.
The lawsuit reportedly alleges that Bank of Baroda officials facilitated “round-tripping” transactions, a practice in which funds are transferred through multiple entities before returning to their original source, potentially concealing the true nature or purpose of the transactions.
According to the court filing, Shetty claims the bank’s monitoring systems generated more than 100 alerts related to suspected money laundering, which were subsequently closed.
He further alleges that the lender continued approving credit facilities without sufficient collateral and failed to inform auditors about concerns surrounding certain loans and financial transactions.
However, a money-laundering alert merely identifies potentially suspicious activity requiring further investigation and does not, by itself, establish that any illegal activity occurred.
Shetty’s legal challenge therefore focuses not only on the allegedly unauthorised financial transactions but also on how the bank handled internal warnings and whether appropriate checks and safeguards were followed.
Shetty seeks $15 billion in compensation
BR Shetty has demanded a total of $15 billion in compensation, comprising $5 billion in direct damages, $5 billion for consequential losses and another $5 billion for alleged damage to his reputation, according to the court filing.
The claim for consequential damages covers business and investment opportunities that Shetty says he lost because of the alleged misconduct. He is also seeking compensation for harm to his professional reputation, business credibility and goodwill.
In addition to the damages, Shetty has requested annual interest of 18% from the date the lawsuit was filed until the compensation is paid.
The amounts are claims made by Shetty and have not been awarded or approved by the court.
The lawsuit also seeks orders to preserve banking documents and electronic records, disclose assets allegedly acquired using funds linked to disputed transactions, and temporarily prevent certain defendants from transferring or disposing of assets in India.
According to the filing, Shetty alleges that some of the disputed funds were invested in Avitis Super Speciality Hospitals and SMARD Building Solutions.
However, the available reports do not indicate that the court has approved the requested disclosures or imposed restrictions on the assets.
Bank of Baroda disputes allegations, highlights outstanding dues
Bank of Baroda has presented a different account of its financial dealings with Shetty, maintaining that the allegations have not been tested in court.
“The Bank has not been served with such a suit and cannot comment on the contents of pleadings which are untested in court,” the lender stated in a notification to the stock exchanges.
The bank also made clear its intention to challenge the allegations if it formally receives the lawsuit.
“If and when the Bank is served, the Bank will defend the suit firmly and take all steps necessary to protect its interests,” it added.
Bank of Baroda said it had secured several court decrees against BR Shetty as part of its ongoing efforts to recover outstanding dues through legal and enforcement proceedings in India and the UAE.
In its statement, the lender also pointed out that the Karnataka High Court had issued an order in 2021 restricting Shetty from transferring, selling or otherwise disposing of his assets.
The bank further claimed that Shetty had subsequently declared himself insolvent during proceedings before the National Company Law Tribunal, stating that he was unable to repay the outstanding amounts owed to the lender.
Bank of Baroda also referred to a separate lawsuit filed in New York involving similar allegations, which it said was dismissed in July 2024.
Bank of Baroda agrees to $600 million settlement in separate case
The latest legal action comes after Bank of Baroda reached a $600 million settlement to resolve claims brought by NMC group companies and their joint administrators.
According to the bank’s regulatory disclosure, the settlement agreement was signed on July 1, 2026.
The settlement relates to separate legal proceedings involving NMC group entities and is distinct from Shetty’s latest $15 billion compensation claim.
According to Shetty’s court filing, the $600 million settlement did not involve any admission of liability by Bank of Baroda. He maintains that he was not a party to the agreement and argues that it does not affect his right to pursue separate legal claims against the lender.
Bank of Baroda confirmed that legal proceedings against it in the Abu Dhabi Global Market (ADGM) were discontinued following the settlement.
However, the bank said a judgment was still pending in related proceedings involving Shetty and a former NMC executive over allegations of fraud, wrongful trading and fraudulent trading.
The lender also clarified that the newly filed lawsuit in Bombay does not create any immediate financial liability unless a court issues an order or the bank is required to make provisions for potential damages.
While Shetty is pursuing compensation for alleged financial misconduct, Bank of Baroda continues its efforts to recover debts it claims remain outstanding.
The dispute over the authenticity of personal guarantees and the legitimacy of financial transactions remains unresolved, with the competing allegations yet to be determined by the court.
