UAE to freeze assets of B.R. Shetty

Several organizations affiliated with Mr. Shetty were blacklisted by the UAE Central Bank

Today, Official sources from UAE reported that the UAE Central Bank has ordered financial organizations to freeze all accounts affiliated with Mr. B.R. Shetty and his family members. They also have been directed to stop all transfers from these accounts and deny access to any deposit boxes. Several organizations associated with Shetty also have been blacklisted.

Central bank’s move is a result of a criminal complaint filed by Abu Dhabi Commercial Bank, which was NMC Healthcare’s biggest lender with the largest exposure of Dh 3 billion, claiming ‘fraud and forgery’ against six people, including founder Mr. B R Shetty and former CEO Mr. Prasnath Manghat. The healthcare provider was placed into administration by a UK court recently following an application by the Abu Dhabi Commercial Bank (ADCB) as well.

The cumulative debt risk by UAE banks to NMC is estimated to be more than Dh 8 billion. The Organization owes money to several Oman-based banks and financial institutions as well.

A similar advisory has been issued for NMC Healthcare and NMC Holding, based on the decision of the Head of Plenary Fund Prosecution.

B.R. Shetty, who moved to the UAE in 1973 from his native Karnataka, began work as a pharmaceutical salesman. With the progress of his organizations, Mr. Shetty was regarded as the world’s richest Kannadiga (Person with ancestry to Karnataka state of India and its surrounding regions), having a net worth of about $3.15 billion in 2019, according to Forbes. NMC Health operates around 200 hospitals and clinics in 19 countries.