The BR Shetty Lawsuit has opened a new legal dispute over alleged financial misconduct connected to the collapse of businesses founded by the UAE-based entrepreneur. B.R. Shetty, founder of NMC Healthcare and UAE Exchange, has filed a $15 billion claim against Bank of Baroda and 25 other defendants. He alleges that the defendants contributed to fraud involving his businesses and exposed him to repayment demands tied to guarantees he disputes.
Shetty filed the case at the Bombay High Court on Tuesday, seeking legal action over several alleged irregularities. His claims include forged signatures, disputed financial transfers, and concerns about how the bank handled money-laundering alerts. However, the allegations remain unproven, and the court has yet to determine responsibility for the disputed transactions.
Bank of Baroda said Wednesday that it had not received formal service of the lawsuit. The lender also stated that it would defend itself firmly if the case reached it. Meanwhile, the bank continues recovery proceedings against Shetty over outstanding dues reportedly worth approximately 28 billion Indian rupees.
The legal action adds another dispute to the financial fallout surrounding NMC Healthcare. The company once ranked among the Gulf’s largest private healthcare providers. However, NMC entered administration in 2020 after disclosing debts of $6.6 billion, substantially exceeding earlier estimates of $2.1 billion.
One central issue in the BR Shetty Lawsuit concerns personal guarantees that Shetty alleges contain forged signatures. Such guarantees can make an individual responsible for a borrower’s debts when that borrower fails to repay. Shetty argues that the bank relied on disputed documents without properly confirming their authenticity. Consequently, the case raises questions about whether he authorised commitments that could expose his personal assets to recovery efforts.
Shetty also challenges certain account instructions and transfers, claiming that some transactions lacked proper authorisation. He has requested disclosure of transaction instructions, account-opening documents, customer-verification records, and information about officials who handled or verified transfers. These records could help establish how the disputed transactions occurred and who approved them.
The lawsuit names 26 defendants, including Bank of Baroda, ten bank officials, former NMC executives Prasanth Manghat and Promoth Manghat, their associates, and two Indian companies. According to the filing, Bank of Baroda served as the NMC group’s principal banker until approximately 2019.
Shetty alleges that the bank went beyond routine transaction processing and helped divert funds through group companies and entities presented as independent suppliers. The filing also accuses bank officials of facilitating transactions involving so-called round-tripping. This term describes funds moving through several entities before returning to their original source, potentially obscuring their purpose.
Another major allegation concerns more than 100 money-laundering alerts that the bank’s systems reportedly generated and later closed. Shetty claims the lender continued extending credit without adequate security and failed to disclose concerns about borrowings and transactions to auditors. Nevertheless, an alert only identifies activity requiring further scrutiny; it does not independently establish money laundering.
The BR Shetty Lawsuit now places these disputed financial practices before the court for consideration. Its outcome will depend on the evidence, the parties’ arguments, and the court’s findings. For now, Shetty’s accusations remain allegations, while Bank of Baroda has indicated its intention to contest the case if formally served.
