NMC Health founder B. R. Shetty files $15 billion lawsuit — The National

In India, NMC Health founder B. R. Shetty has filed a $15 billion lawsuit with the Bombay High Court against the state-owned Bank of Baroda and 25 other defendants. The businessman alleges that the bank and several of its current and former employees facilitated fraud which, in his version, was one of the factors behind the collapse of NMC Health.

The National reports, citing court documents reviewed by Reuters. Shetty is seeking $5 billion in direct damages, $5 billion in indirect damages, and another $5 billion in compensation for reputational harm.

The bank's position

Bank of Baroda said it had not yet received the lawsuit and therefore could not comment on the allegations set out in it, which have not been reviewed by a court. The bank said that once the documents are served, it will firmly defend its interests and take all necessary measures.

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The bank also said it is pursuing debt recovery proceedings against Shetty in India and the UAE amounting to 28 billion rupees, or about $294.5 million. According to the lender, it has already obtained several court rulings concerning the businessman. Bank of Baroda said that no immediate liability would arise until a court rules or the bank is required to make a provision for potential payments.

Allegations and the NMC Health case

Shetty alleges that Bank of Baroda employees facilitated circular fund transfer transactions, ignored repeated anti-money-laundering warnings, and accepted documents with forged signatures. Representatives of the businessman did not provide an immediate comment.

NMC Health, which at the time was the largest private healthcare provider in the Gulf countries, entered administration in 2020. The company reported debts of $6.6 billion, although they had previously been estimated at $2.1 billion. Shetty's lawsuit was filed three months after Bank of Baroda agreed to pay $600 million to settle claims by NMC Health's administrators.