UAE court holds NMC founder BR Shetty liable in $5.4 billion case
An Abu Dhabi court found BR Shetty liable over fraud at NMC Health and set a $5.397 billion starting point for his contributions to its assets.
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what happened
A court in the Abu Dhabi Global Market has found Bavaguthu Raghuram Shetty, known as BR Shetty, liable for fraudulent and improper trading, according to Moody's. The case concerns the downfall of NMC Health, a healthcare group he helped found in 1975.
The judge concluded that Shetty and former chief executive Prasanth Manghat knowingly took part in diverting company funds, hiding borrowings and manipulating financial statements. The court set the starting point for assessing their financial contributions to the company's assets at $5.397 billion, applying ADGM insolvency rules from 2022.
The court rejected Shetty's claim that senior executives defrauded him, as well as Manghat's argument that he had no control over financial affairs. It declined to make any finding against Bank of Baroda, saying such a conclusion would be unfair to the bank and its former managing director.
why it matters
The ruling matters as a precedent for recovering losses from founders and executives of failed companies, and for NMC's creditors, which include major banks in the UAE and India. In July, Bank of Baroda said it had reached an out-of-court settlement worth $600 million.
market impact
NMC Health creditors: the ruling sets the size of the founder's liability for company assets
tags
instruments
sources
- NMC Healthcare founder BR Shetty held liable for $5.4 billion fraud in Abu Dhabi - All you need to know about the case — Moody's, 8 November 2026 at 06:34 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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