NMC founder B.R. Shetty sues Bank of Baroda for $15 billion over alleged fraud

NMC Healthcare founder B.R. Shetty has filed a $15 billion lawsuit against Bank of Baroda and 25 others in the Bombay High Court, alleging the bank facilitated fraudulent transactions through forged signatures and processed over 100 suspicious transactions without proper due diligence. Bank of Baroda denies the allegations and states it has not been served; the bank is separately pursuing recovery proceedings against Shetty for outstanding dues of ₹2,800 crore.

Quick Facts

B.R. Shetty filed $15 billion lawsuit in Bombay High Court
Alleged fraudulent transactions and fund diversion through fictitious supplier accounts
Alleged forged and unauthorized signatures on documents and accounts
Alleged processing of over 100 suspicious transactions despite anti-money laundering alerts
Alleged round-tripping arrangements and collateral-free credit

B.R. Shetty, 84-year-old founder of NMC Healthcare and UAE Exchange, has filed a $15 billion lawsuit in the Bombay High Court against Bank of Baroda and 25 other defendants, alleging they facilitated fraudulent transactions that led to the collapse of his business empire. The suit seeks $5 billion in direct damages, $5 billion in consequential losses (including lost business opportunities), and $5 billion in compensation for reputational harm, along with 18% annual interest on the first $10 billion. The reputational damages claim is directed solely at Bank of Baroda.

The lawsuit names 26 defendants in total: Bank of Baroda, 10 of its current and former officers, former NMC executives Prasanth Manghat and Promoth Manghat, their associates, and two Indian companies—Avitis Super Speciality Hospitals and SMARD Building Solutions. Shetty alleges that the bank processed over 100 suspicious transactions despite anti-money laundering alerts, ignored compliance warnings, and allowed fund transfers based on signatures he claims were forged or unauthorized. The petition further alleges that Bank of Baroda's Abu Dhabi and DIFC branches facilitated "round-tripping" arrangements and that bank personnel accepted instructions from unauthorized individuals on his personal accounts.

According to the filing, Shetty relinquished operational control of group companies from 2012, after which a management team led by the Manghat brothers allegedly diverted funds through fictitious supplier accounts. Shetty claims he frequently signed between 100 and 200 documents daily without reviewing all contents, and that some signatures were obtained through misrepresentation, copied electronically, or forged. The suit also alleges that two accounts were opened in his name at the National Bank of Fujairah in December 2017 and March 2019 without his knowledge, using forged documentation.

Bank of Baroda has denied the allegations and stated it has not been served with the lawsuit. In an exchange filing, the bank said it will "defend the suit firmly and take all steps necessary to protect its interests" if and when served. The bank noted it is pursuing separate recovery proceedings against Shetty for outstanding dues of approximately ₹2,800 crore ($336 million USD equivalent) and has obtained decrees against him in UAE and DIFC courts. The bank also stated that Shetty has claimed insolvency in NCLT proceedings.

The lawsuit comes after Bank of Baroda settled a related case with joint administrators of the insolvent NMC Healthcare in June 2026 for approximately $600 million. A previous lawsuit filed by Shetty against the bank in the Supreme Court of New York was dismissed in July 2024. The filing of the suit triggered a 3.47% drop in Bank of Baroda's share price on the BSE.

NMC Healthcare, once the UAE's largest private healthcare provider and an FTSE 100 listed company, collapsed in 2020 following disclosures by short-seller Muddy Waters in December 2019 that questioned its financial statements. The company subsequently revealed billions of dollars in previously undisclosed borrowings; total debt was revised to approximately $6.6 billion, significantly higher than the initial $2.1 billion estimate. The London-listed parent entered administration in April 2020, with UAE operations following in September 2020.

Topics

Politics Business World

#anti-money laundering #damages #Bank of Baroda #Bombay High Court #Manghat brothers #lawsuit #NMC Healthcare #fund diversion #B.R. Shetty #fraud

Entities

Why This Matters

The lawsuit exposes potential banking compliance failures in processing large transaction volumes across multiple jurisdictions during the collapse of a major FTSE 100-listed healthcare group. Bank of Baroda faces reputational and financial risk: the lawsuit triggered a 3.47% share price drop on BSE, and the bank is simultaneously defending separate recovery claims totaling ₹2,800 crore (~$336 million USD). Market participants are observing outcomes that may affect regulatory scrutiny of cross-border fund flows, corporate governance in insolvency proceedings, and judicial treatment of conflicting claims between senior management and financial institutions. The case involves competing narratives on signature authenticity, fund diversion mechanisms, and compliance protocols—outcomes will set precedent for similar disputes involving FTSE-listed entities and their key stakeholders.

Timeline & Sources

Jan 1, 2021

Wire

Karnataka High Court restrained Shetty from dealing with or alienating his assets

Quick Facts

Topics

Entities

Why This Matters

Timeline & Sources

Related Signals

Sources