Health

BR Shetty ordered to pay $106m to Indian bank

February 20, 2025, 11:58 AM

BR Shetty was found liable for debts tied to three NMC Healthcare credit facilities, according to court documents

Shetty must pay Icici Bank
He is founder of NMC Health
Shetty denies wrongdoing

BR Shetty, the founder of UAE company NMC Health, has been ordered by a Dubai court to pay $106 million to India’s Icici Bank over personal guarantees tied to the embattled hospital group.

This marks a second court ruling made public so far this month. Earlier this month, Shetty was ordered to pay $33 million to Bank of Baroda.

The case is part of continued fallout from NMC Health’s collapse in 2020, which exposed more than $6.6 billion in hidden debt across 75 facilities from more than 80 financial institutions, with UAE and international lenders since scrambling to recover funds.

In its latest ruling, Dubai International Financial Centre (DIFC) Courts found Shetty personally liable for debt owed to Icici, one of India’s publicly traded and largest private sector banks by market capitalisation.

According to court documents, Shetty was found liable for debts tied to three NMC Healthcare credit facilities.

The court rejected his claims that signatures on the guarantees were forgeries, citing expert forensic analysis and witness testimony from the bank’s executives.

Shetty, who has faced multiple legal battles in the UAE and overseas, had argued he was unaware of the guarantees and that his signature had been misused.

NMC Health was placed into administration in 2020, triggering multiple lawsuits and regulatory investigations in the UAE, India and the UK.

Icici had sought over $125 million from Shetty.

The ruling allows both sides to submit arguments on interest and legal costs within 28 days.

Shetty, once one of the UAE’s most prominent businessmen, has denied wrongdoing and claimed he was a victim of fraud within NMC.

NMC, which operates 85 medical facilities across the UAE, emerged from administration in 2022 after a $4 billion debt restructuring led by Abu Dhabi Commercial Bank, which was owed $963 million.

NMC Healthcare has been seeking a buyer but has yet to secure one. The company told AGBI differences over valuation is one hurdle.

Earlier this month, two people familiar with the matter said Abu Dhabi-based PureHealth Holding, the UAE’s largest healthcare group by number of facilities, abandoned talks to acquire NMC due to disagreement over price.