Connect with us

Featured

BR Shetty & NMC Health: The Rise & Fall Of India’s Strongest Asset In The UAE

Published

on

Have you heard about BR Shetty from NMC Health? Considered an avid supported of PM Narendra Modi in the UAE the story of BR Shetty & his company NMC Health is shattering and yet very inspiring. 

Not Chinese Army But Beijing’s Investment Policy Biggest Threat To India

“Be careful what you wish, for wishes do come true,” the maxim seems to be true in the case of Bavaguthu Raghuram Shetty (BR Shetty) who in an interview in 2018, remarked, “If I don’t have one problem a day, that’s not a good day for me. I should have a problem, solve it and then feel satisfied.”

BR Shetty & NMC Health

BR Shetty’s wish seems to have come true as he has been overwhelmed with problems ever since his fortunes dwindled after becoming one of first Indians to make his fortune in the UAE’s healthcare industry when he set up NMC Health in the 1970s and grew it exponentially.

BR Shetty was the living embodiment of the Indian economic dream. He was born in Kaup, Udupi in Karnataka and worked as the Vice Chairman of the Municipal Council in Udupi.

UK Wasting Billion Of Dollars In Purchasing American ‘Stealth’ F-35 Fighter Jets: UK Experts

Shetty set sail for the oil-rich Gulf country of United Arab Emirates in 1973 with nothing but a pharmaceutical degree and just $8 out of which he built a massive $4.2 billion enterprise by 2018 according to Forbes.

Muddy Water Spills On NMC Health & BR Shetty

However, his woes started to overflow soon after when short-seller Carson Block of Muddy Waters Research wrote a damning report accusing NMC Health of fraudulent asset values and theft of company assets.

The tweet dropped like a bomb on New Medical Centre, UAE largest private healthcare provider founded by BR Shetty. Immediately the share price tanked which surprised Muddy Waters as they had not mentioned the name of the company against whom they were going to initiate the campaign.

The report mentioned that NMC health had understated its debt by $4.5 billion. His financial firm Finablr that owns UAE Exchange found that $100 million worth of cheques were issued without the board’s knowledge.

Top executives of both firms were sacked and LSE suspended trading of both the companies. BR Shetty himself had to step down as director and chairman of NMC health and is facing criminal charges for fraud and forgery in Abu Dhabi.

BR Shetty In A Soup Over Loans

NMC reportedly owns money to 80 institutions and according to Bloomberg. NMC Health owes Abu Dhabi Commercial Bank (ADCB) $963 million, Dubai Islamic Bank $541 million, Abu Dhabi Islamic Bank $325 million, Standard Chartered $250 million and Barclays $146 million.

Shetty, since the report has emerged, has flown back to India and has promised full disclosure of the all that transpired.

BR Shetty like his father served the Municipal Council of Udupi early in his teen years. Although his father was a Congress loyalist, Shetty was drawn towards the then-popular leader and later India’s Prime Minister Atal Behari Vajpayee who he used to drive in his car whenever he visited their area.

His business as a distributor for a Pune based Pharmaceutical Company soon was disturbed due to his political activities which forced him to take a loan to fund his sister’s wedding. That incident left an indelible mark on Shetty who decided to move UAE to make his fortune.

With his hard work, dedication and passion he incorporated NMC which also became the first healthcare company from the country to be listed on LSE and be a part of FTSE100 Index and MSCI Global Index.

Its IPO was a hit as it raised 117 million pounds. His company catered to 8.5 million patients annually across 200 facilities in 17 different countries. Shetty then went on to form UAE Exchange a major remittance firm in 1980 which served 15 million customers and had a strong fiscal tie-up with around 140 banks.

He also founded pharmaceutical manufacturing company Neopharma in 2003 which was inaugurated by then Indian President APJ Abdul Kalam. Shetty had also signed up to be part of the Giving Pledge — a campaign by Bill Gates and Warren Buffett — committing to donate to charity at least half of his personal fortune.

Can Freeh Group Free BR Shetty Of Fraud Allegations?

Since the company’s and BR Shetty’s fortunes took a nosedive, NMC Health appointed Freeh Group, headed by a former FBI (Federal Bureau of Investigation) director, to investigate the charges. The investigation found that unknown to the board and the stock market, the company had entered into a $335 million financing arrangement with entities controlled by Shetty and another main shareholder, Khaleefa Bin Butti.

There was also confusion about how much stake each shareholder-owned, with the company revealing that few principal shareholders had misstated their claim. Finablr which thought it would remain unscathed by the troubles at NMC found that it had unaccounted cheques of USD 100 million issued to third parties.

The most damaging aspect of all was that NMC’s debt was revealed to be 6.6 USD billion which was way higher than initial reports. Shetty earlier has stated to return to Abu Dhabi and fulfil his obligations after the coronavirus tide subsides.

Via: Economic Times

Advertisement
Advertisement

Facebook

FEATURED

sharif-modi-meeting sharif-modi-meeting
Featured2 hours ago

Nawaz Sharif’s Speech Against Pakistan Army Widely Celebrated In India – Imran Khan

Pakistan PM Imran Khan denounced former PM Nawaz Sharif and stated that the opposition has only one agenda i.e. how...

INDIAN-ARMY INDIAN-ARMY
Asia Pacific12 hours ago

Indian Army Has Deployed Additional 100,000 Troops Near The LAC – Top Chinese General

Despite the sixth round of Corps Commander level meeting between India and China which failed to provide any significant breakthrough,...

F18-India-Deal F18-India-Deal
Featured13 hours ago

NATO Commitment Forces Germany To Acquire F-18 Super Hornets & Reduce Number Of Typhoons

German President Frank-Walter Steinmeier is looking to procure the new Eurofighter Typhoons and F-18 Super Hornets to bridge the gap...

INDIA-CHINA INDIA-CHINA
Expert Reviews15 hours ago

‘Hot Winters’ Ahead – China Says PLA Needs To Teach A Harsh Lesson To ‘Insincere’ India – OPED

The portents of war between China and India seem to be getting more and more darker by every passing day....

SAAB-GRIPEN SAAB-GRIPEN
Featured21 hours ago

SAAB Delivers Gripen-E Jets To Brazil; Offers ‘Exceptional Deal’ To The Indian Air Force

With India’s new FDI model under the new indigenization drive, SAAB has seen it as a lucrative offer and is...

F-35-INDIA F-35-INDIA
Europe22 hours ago

After Rafale Jets, This Air Force Wants Stealth F-35s That Was Once Meant For Turkey?

While some recent reports indicated that with the arrival of F-35s, UAE cold shed some of its F-16s and sell...

j20-vs-tejas j20-vs-tejas
Asia Pacific23 hours ago

Taiwanese Expert Says ‘Bathrooms Best Place To Hide’ During Chinese Air Raids, Missile Attack

As tensions between China and Taiwan are only increasing day by day, former Ministry of Defense advisor Sung Chao-wen on...

SU-30-MKI SU-30-MKI
Featured1 day ago

Indian SU-30 MKI Jets Loaded With BrahMos Missiles Practice Hitting Chinese Assets Far Away From Ladakh

Soaring tensions between India and China in Ladakh has seen both the sides deploying thousands of troops, heavy artillery and...

China-and-India China-and-India
Asia Pacific1 day ago

India-China War Highly Unlikely; Beijing Only Testing Indian Resilience – Experts

India-China War: The joint statement following the meeting said that ministers had a “frank and constructive discussion on the developments...

imran-khan imran-khan
Featured1 day ago

India, Pakistan Clash At UNGA – Indian Diplomat Walks Out As Imran Khan Goes All-Out Over Kashmir

India strongly reacted to Pakistan PM Imran Khan's speech at UNGA calling it a 'diplomatic low'. India's envoy to the...

Advertisement