Asian businessman’s NMC Health under scrutiny in UK and US

NMC Health, once the largest private healthcare provider in the United Arab Emirates, is facing inquiries from agencies in Britain and the US over alleged fraud, according to a media report.

The Serious Fraud Office in Britain and the Department of Justice in the US are among global law enforcement agencies and regulators investigating the alleged fraud at NMC, the former FTSE 100 private healthcare group, The Times reported.

Founded by India-born businessman Bavaguthu Raghuram Shetty, NMC was plunged into crisis after Muddy Waters, a San Francisco-based

short-seller, published a damning report in 2019.

Alvarez & Marsal was appointed administrator in April last year by creditors, who include Barclays, after an accounting scandal. It has incurred time costs totalling at least £37 million, the latest report to creditors said.

Alvarez & Marsal has also received information requests from agencies, including the US Securities and Exchange Commission and the Financial Conduct Authority and Financial Reporting Council in the UK as part of its investigation into the group’s collapse, the report added.

NMC was operating in 19 countries, including the US and Britain. The administrator continues to operate the businesses. The sale of Aspen Healthcare, the UK business, whose facilities include hospitals in Wimbledon and Highgate, is set to complete in the coming weeks, reports said.

Shetty, 78, claimed in April last year he was a victim of an alleged fraud. He is facing a number of lawsuits, including from Barclays, which launched a $130 million (£91.5m) legal claim. Recently, an Indian court refused to let Shetty travel to the UAE, upholding an earlier ruling.