TDN World Desk: Abu Dhabi based NMC Health has been placed under the UK court’s supervision. The court will now appoint administrators to oversee the whole management and operations of the UAE’s largest healthcare operator, The Gulf news reported.
The UK court has taken this major decision following an appeal filed by Abu Dhabi Commercial Bank (ADCB) for “joint administration” of NMC Health, after it was found that the hospital operator had $6.6 billion in bank debt and was in no position to pay it off.
Indian billionarie BR Shetty who was thefounder and CEO of
NMC Health, one of the largest Hospital chain in UAE, has allegedly fled to home country India after his company was found involved in huge financial irregularities.
“The true picture of the financial difficulties faced by NMC only became apparent through a series of announcements by the Company since February 2020, including the uncovering of over $4 billion of previously undisclosed debts,” ADCB said in a statement immediately after the UK court order.
“Contrary to the information the Group provided to ADCB and in breach of the various loan covenants and commitments, following these revelations, the Bank learned that it was among over 80 major regional and international financial institutions that extended credit to the Group.”
NMC Health borrowed huge amounts of money from a number of banks from middle-east countries. HSBC Bank Oman disclosed an exposure of about $16 million (Dh58.76m) to the healthcare firm NMC Health.Dubai Islamic Bank said it is owed $425m by NMC, Abu Dhabi Islamic Bank is owed $291.4m, and has a $31m investment in NMC Health.
The Abu Dhabi based NMC was founded by Dr Bavaguthu Raghuram Shetty in 1975, and now employs more than 2,000 doctors and about 20,000 other staff across 19 countries.
The fiasco followed last year after a report by US-based short seller Muddy Waters alleged that NMC Health had inflated its cash balances, overpaid for assets and understated its debt.
RSS BJP Link
Before he set his foot on the plank of Business adventure in the Middle East country, DR BR Shetty got recognitation as a politician in his home state Karnataka. Atal Behari Vajpayee and Narendra Modi had also campaigned for him when he fought election in the Udupi civic election under the Jan Sangh (The predecessor of BJP).
In 2016, RSS chief Mohan Bhagwat once held closed door meeting in Kerala with NRI businessmen to further its agenda in the Muslim ruled gulf countries. Among other prominent businessmen BR Shetty, the CEO of NMC group was part of that meeting. He is also know for his staunch support for BJP.
Future Plan in India
In August, 2019 during an interaction with PM Modi he expressed his wish to return to India and invest in health, tourism, and film city.
BR Shetty said that he had a plan to invest $5 billion for ‘New India’.
Article 370 was abrogated in Jammu and Kashmir on 5th August,2019. In September,2019 Arabian Business published an exclusive interview with BR Shety where he said he had a plan to 3,000-acre film city in Kashmir.
“it’s a very scenic place, and I’m going to have a film city there,so that people can come and shoot films there, and for tourism,” BR Shetty told the news paper.
“I’ve already got land offers from Jammu and Kashmir and Ladakh, about 3,000 acres”, he added.