Criminal charges filed against BR Shetty, 5 others in UAE's NMC case

The Abu Dhabi Commercial Bank (ADCB) has filed a criminal complaint a number of individuals, including founder BR Shetty, and former CEO Prasnath Manghat, in relation to NMC Health Group, the UAE's largest healthcare operator.

In a copy of the complaint, obtained by Khaleej Times on Wednesday, the bank confirmed the move but did not identify the accused.

ADCB said it was "acting on its own behalf and on behalf of its subsidiary Al Hilal Bank and its acquired bank United National Bank". The charges levelled against the accused include forgery of financial records and fraud.

"The fraud was committed as a result of collusion between the accused to fabricate and use forged financial statements in which they had willfully misstated the accumulated liabilities of the NMC Group," the complaint said.

"The accused presented false valuations to ADCB and its subsidiaries and materially misstated their ability to service the best such that the complainant was fraudulently deceived into granting facilities which NMC drew down," it added.

Meanwhile, Shetty, who is in India, told Khaleej Times that he had worked with all lending banks for decades as key partners who helped him in building his businesses in the UAE.

"As I said last week, given my own legal and forensic investigations are now starting to produce some findings and in consideration of some of the misleading and false allegations that have made against me. I will be looking to respond in the appropriate manner and with the appropriate authorities both in the UAE and elsewhere," he said.

"As I stated last week, I am absolutely determined to bring to light the full facts, and the whole truth, around what has transpired as soon as possible," he added.

Apart from requesting for the opening of a criminal case against the accused of the offences cited, the bank -- which has an exposure of Dh3.6 billion to NMC Health -- pleaded to the public prosecution to conduct "an investigation into the accused and their involvement in the offences outlined in the complaint and issue a travel ban to prevent them from travelling" as well as 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".

The lender also requested the prosecution to direct "all economic departments and free zone authorities in the UAE to identify and freeze all compes 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 Health has a market value of USD 2.4 billion and a total debt of USD 6.6 billion. Since December last year, after the US short-seller Muddy Waters questioned its financial irregularities, NMC share value had shrunk by more 70 per cent.

More than 80 local, regional and international banks have exposure to the scandal-marred firm. Banks in the UAE had disclosed nearly Dh10 billion exposures, the newspaper reported.

( With inputs from ANI )