New Delhi, Oct 14 (SocialNews.XYZ) Bank of Baroda on Wednesday said it would firmly protect its interests after UAE-based businessman and founder of NMC Health, B.R. Shetty, filed a case against the bank in the Bombay High Court, seeking $15 billion in damages over alleged fraud involving group companies.
In a stock exchange filing, the Bank of Baroda said, "The Bank has not been served with such a suit and cannot comment on the contents of pleadings which are untested in court. If and when the Bank is served, the Bank will defend the suit firmly and take all steps necessary to protect its interests."
Bank of Baroda further stated that it was pursuing recovery and enforcement proceedings in India and UAE against Shetty for outstanding dues of Rs 2,800 crore and had obtained several decrees against him.
The lender also said the Karnataka High Court had restrained Shetty from dealing with or alienating his assets in 2021. In subsequent proceedings before the National Company Law Tribunal, Shetty had asserted that he was insolvent and unable to meet the bank’s dues, according to the statement.
The bank further said Shetty had previously filed a similar suit against it in the Supreme Court of the State of New York, which was dismissed.
Shetty has alleged that Bank of Baroda and several current and former employees of the public sector lender helped facilitate a fraud that contributed to the collapse of the Gulf-based healthcare group.
NMC the Gulf's largest private healthcare provider at the time, was placed under administration in 2020 after months of financial mismanagement, and disclosed debts of $6.6 billion, above earlier estimates of $2.1 billion.
Bank of Baroda said the matters described in media reports were also the subject of proceedings before the Abu Dhabi Global Market (ADGM) Court, where judgment was reserved against Shetty and former NMC Healthcare CEO, Prashant Manghat, in proceedings concerning allegations of fraud, wrongful trading and fraudulent trading.
The bank said the ADGM proceedings against it had been discontinued following a settlement with the joint administrators of NMC Group.
The bank said it will not bear any immediate liability till any order is passed and/or till it is required to make a provision on account of potential damages.
The price of Bank of Baroda shares dropped 2.6 per cent to Rs 231.40 in the intraday trading in the stock market on Wednesday.
Source: IANS
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