B.R. Shetty, founder of NMC Healthcare and UAE Exchange, has filed a $15 billion lawsuit against Bank of Baroda and 25 other defendants, alleging their involvement in facilitating fraud linked to his business empire. The legal claim was submitted on Tuesday to the Bombay High Court and accuses the bank of mishandling money laundering alerts, relying on forged signatures, and enabling questionable financial transactions.
Shetty’s suit centers on disputed personal guarantees and documents bearing signatures he says were forged. These documents, he contends, were used by the bank to demand repayment from him without proper verification, exposing his personal assets to recovery actions that he denies authorizing. The suit further alleges unauthorized transfers and account instructions and seeks court-ordered disclosure of transaction records, account-opening documents, customer verification data, and information about bank officials involved in the processing and approval of these transfers.
The list of defendants includes Bank of Baroda, 10 of its officers, former NMC executives Prasanth Manghat and Promoth Manghat, their associates, and two Indian companies. According to Shetty’s filing, Bank of Baroda served as the main banker for the NMC group until approximately 2019. He accuses the bank of facilitating "round-tripping" transactions—funds cycling through multiple entities and returning to their source in a manner that obscures their origin and purpose.
Shetty further alleges that the bank’s transaction-monitoring system generated more than 100 alerts for suspicious activity that were subsequently closed without appropriate action. He claims Bank of Baroda continued to extend credit to NMC entities without adequate collateral and failed to inform auditors of concerns related to borrowing and transaction irregularities.
In response, Bank of Baroda stated it has not yet been served with the lawsuit and described the allegations as untested in court. The bank said it intends to mount a robust defense while continuing efforts to recover approximately 28 billion rupees (around $340 million) in outstanding dues from Shetty.
This lawsuit adds another layer of complexity to the ongoing fallout from NMC Healthcare’s dramatic collapse. Once the largest private healthcare provider in the Gulf region, NMC entered administration in 2020 after revealing debts amounting to $6.6 billion—far exceeding earlier estimates of $2.1 billion.
Shetty is seeking $5 billion each for direct damages, consequential damages—which include lost business and investment opportunities—and reputational harm. His claim also requests interest at 18% per year on the total amount, along with preservation orders on banking records, disclosure of certain assets allegedly funded by the disputed transactions, and interim restrictions barring certain defendants from dealing with assets in India. Among those assets named in the filing are investments in Avitis Super Speciality Hospitals and SMARD Building Solutions.
As of now, it is unclear whether the court has granted the requested disclosures or imposed any asset restrictions. The litigation is expected to proceed through the Bombay High Court, where the issues of forgery, liability, and financial irregularities linked to NMC’s collapse will be examined.