SHETTY ADMITS FRAUD BY A GROUP OF EXECS

B.R. Shetty, founder of the scandal-hit NMC Healthcare and Finablr, says an enquiry he had initiated has unearthed fraud committed by “a small group of current and former executives”.

dubai — BR Shetty, founder of the scandal-hit NMC Healthcare and Finablr, on Wednesday lashed out against “a small group of current and former executives” at those entities, accusing them of fraud subsequent to “a forensic enquiry” he had initiated.

Shetty, who has been elusive to the media and staying in India since shocking revelations about the crisis-torn NMC and Finablr surfaced, said in a statement he is “vigorously pursuing, all legal actions and remedies available to me against those who have committed fraud against my businesses and myself.”

The billionaire-founder of the two firms, currently shuddering in a maelstrom of allegations of billions of dollars in concealed debts, blatant irregularities, forgery and fraud that has rocked the financial world, also confessed that “serious fraud and wrongdoing” appear to have taken place” in both those companies he had been heading not so long ago “as well as within some of my private companies, and against me personally.”

“This fraud also appears to have been undertaken by a small group of current and former executives at these companies,” Shetty said.

Shetty’s revelations came as the Central Bank of the UAE advised banks to freeze Shetty’s accounts as well as that of his family and several other people.

The CBUAE move is subsequent to a criminal complaint filed by Abu Dhabi Commercial Bank, which has the largest exposure of Dh3 billion to NMC Healthcare, alleging “fraud and forgery” against six people, including founder Shetty, and former CEO Prasanth Manghat.

In the complaint filed, ADCB had requested the federal public prosecution for the opening of a criminal case against the six accused and to direct “the Central Bank to freeze all accounts belonging to the accused and all their family members, up to three degrees removed, as well as private company accounts belonging to them, to prevent disposal of assets”.

ADCB also has requested the prosecution to direct “all economic departments and free zone authorities in the UAE to identify and freeze all companies or economic entities belonging to the accused, or members of their families to prevent the disposal of assets, including any movable and/or immovable property and real estate inside and outside the state; and authorise a raid and search of the residence of all the accused including the confiscation of all papers and financial documents, computers and any other relevant evidence.”

NMC, which has borrowed from a total of 80 local and international banks, disclosed $6.6 billion in debt last month, above $2.1 billion disclosed in June last year.

UAE banks said in stock ex- change filings in the past few weeks they had more than Dh10 billion in exposure to NMC.

This fraud also appears to have been undertaken by a small group of current and former executives at these companies BR Shetty

Founder, NMC Healthcare