From Udupi Council to $15 Billion Court Battles: The Unending Saga of B.R. Shetty and Bank of Baroda
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Summarized by AI; it may make mistakes. Check important info
Former UAE-based healthcare tycoon Bavaguthu Raghuram (B.R.) Shetty has filed a $15 billion (approximately ₹1.44 lakh crore) suit in the Bombay High Court against state-owned Bank of Baroda and 25 co-defendants, alleging bank officials collaborated with executive managers to engineer the financial collapse of his corporate empire through fraud and forged guarantees.
The lawsuit represents a major turn in an ongoing financial dispute between the founder of NMC Health and India's state lender. Represented by law firm MZM Legal, Shetty accuses Bank of Baroda officers of ignoring over 100 internal anti-money laundering alerts, enabling circular fund transactions, and accepting bribes to conceal company liabilities from auditors.
The $15 billion claim demands $5 billion in direct damages for lost equity and seized assets, $5 billion in consequential losses from lost business opportunities, and $5 billion in reputational damages directly from Bank of Baroda, alongside 18% annual interest.
Who is BR Shetty -From Municipal Politics to UAE Empire
Shetty began his public career in Karnataka, winning a seat on the Udupi Town Municipal Council in 1968 representing the Bharatiya Jana Sangh, the political predecessor of the Bharatiya Janata Party. He later served as the municipal council's Vice-Chairman before relocating to Abu Dhabi in 1973 following financial setbacks in early distribution ventures.
In the UAE, Shetty built a massive business presence, launching New Medical Centre (NMC) in 1975, which grew into the region's largest private healthcare provider, alongside foreign exchange operator UAE Exchange. Over the years, he acted as a prominent business bridge between India and the Gulf region, receiving the Padma Shri award in 2009 and coordinating diaspora events during official ministerial visits.
The Collapse and Debt Recovery Action
The NMC Health conglomerate collapsed in late 2019 after financial research firm Muddy Waters raised questions regarding its accounting practices. Independent forensic audits later uncovered over $4 billion in hidden, undisclosed debt, forcing NMC Health and parent firm Finablr into administration in London and Abu Dhabi.
Bank of Baroda moved to protect its exposure, initiating legal actions across Indian debt recovery tribunals and UAE courts to recover around ₹2,800 crore in outstanding credit lines backed by Shetty’s personal guarantees. Indian courts restrained Shetty from selling or transferring personal assets in 2021, while international freezing orders restricted his holdings globally.
In July 2026, Bank of Baroda executed a $600 million out-of-court settlement with court-appointed administrators Alvarez & Marsal to settle institutional liability claims linked to restructured NMC Health operations.
Allegations of Forgery and Bank Complicity
Shetty's new lawsuit contends that bank officers worked alongside former NMC management executives including Prasanth Manghat and Promoth Manghat to issue unauthorized loans and process documents bearing forged signatures.
The court filing alleges that Bank of Baroda officials accepted gifts and electronics to overlook loan defaults, allowed corporate funds to pass through unverified accounts, and improperly held Shetty personally liable for debts created without his authorization.
Bank of Baroda addressed the legal action through a regulatory disclosure to stock exchanges, confirming it has not yet received official service of the court papers. "The Bank will defend the suit firmly and take all steps necessary to protect its interests once served, while continuing its lawful recovery actions," the lender stated in its exchange filing.
Bank of Baroda continues to pursue execution proceedings to recover its outstanding dues of ₹2,800 crore based on legal decrees obtained in Indian and UAE jurisdictions.
