Bank of Baroda to Defend Interests After UAE Businessman Shetty Files $15 Bln Suit
Shetty alleges the lender and employees helped enable fraud tied to NMC Health’s collapse and seeks $15 billion in damages.
- On Wednesday, Bank of Baroda stated it will "defend the suit firmly" after NMC Health founder B.R. Shetty filed a $15 billion case against the lender and 25 defendants in the Bombay High Court on Tuesday.
- Shetty alleges that bank officials enabled round-tripping transactions and ignored anti-money laundering warnings, contributing to the 2020 collapse of the Middle East healthcare provider which disclosed $6.6 billion in debts.
- The filing seeks $5 billion each in direct damages, consequential damages, and reputational harm, while Baroda simultaneously pursues recovery proceedings against the founder for outstanding dues of 28 billion rupees.
- Bank shares dropped 2.6% on Tuesday following the lawsuit, which arrives three months after the lender agreed to pay $600 million to settle separate claims brought by administrators of the firm.
- The lender noted it has not yet been served and cannot comment on untested pleadings, asserting it will take all necessary steps to protect its interests once formally notified of the action.
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NMC Health Founder BR Shetty Sues Bank of Baroda for USD 15 Billion; Lender Issues Clarification
Bank of Baroda clarified it has not been served with any lawsuit following reports that NMC Health founder BR Shetty filed a USD 15 billion suit alleging fund diversion. The bank stated it will defend itself firmly if served. This follows a prior USD 600 million settlement by the lender to resolve disputes over NMC’s 2020 collapse. NMC Health Founder BR Shetty Sues Bank of Baroda for USD 15 Billion; Lender Issues Clarification.
Bank of Baroda to defend interests after UAE businessman Shetty files $15 bln suit
Bank of Baroda is contending with a $15 billion lawsuit filed by B.R. Shetty following NMC Health's collapse. Shetty alleges that bank officials facilitated fraudulent transactions and ignored anti-money laundering warnings. The bank is currently pursuing recovery proceedings against Shetty for significant outstanding dues. Bank of Baroda has stated that it has not been served with the lawsuit yet.
Bank of Baroda shares fall 3% after NMC Healthcare’s B.R. Shetty files lawsuit - Details, share price trend
Bank of Baroda shares declined 3% in morning trade on the BSE on Wednesday, 14 October, a day after NMC Healthcare’s B.R. Shetty filed a lawsuit against the bank.
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