B. R. Shetty moves Bombay High Court seeking directions against Bank of Baroda in NMC Healthcare case

B. R. Shetty | Photo Credit: The Hindu Bavaguthu Raghuram (B. R.) Shetty, founder and promoter of the failed UAE-based healthcare venture NMC Healthcare and UAE Exchange, has moved the Bombay High Court seeking protection for his $15 billion damages claim against Bank of Baroda (BoB). In two interim applications, he has sought security for the claim and preservation of the bank’s electronic records and documents relating to its $600 million settlement in the NMC dispute.Through his applications, filed by his constituted attorney Shishir Shetty, he has sought three levels of protection pending final disposal of the suit: security for the claim, earmarking of funds through a specific provision or non-distributable reserve, or disclosure of the claim as a contingent liability in the bank’s balance sheet. He has also sought compliance affidavits and ad-interim relief on the same terms.The underlying suit seeks $15 billion from all defendants jointly and severally, with interest at 18% annually. The claim comprises $5 billion each for direct damages arising from alleged fraud and negligence, consequential damages including loss of opportunity, and loss of reputation and goodwill, the last being claimed against BoB alone.The applications cite the bank’s disclosures between May and July 2026. According to Mr. Shetty, BoB’s FY26 annual report stated that it had a good case in proceedings initiated by the joint administrators of NMC companies before the Abu Dhabi Global Market (ADGM) Courts, without making a provision or disclosing a contingent liability.Within weeks, the bank agreed to settle the proceedings for about $600 million (₹5,700 crore). On July 2, it disclosed the settlement under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, stating that it was “without admission of liability”. The application alleges that BoB’s shares fell sharply following the development and that the settlement terms remain undisclosed.Mr. Shetty alleges that after he relinquished control of the group around 2012 and stepped down as CEO in March 2017, the Manghat brothers and their associates drained the NMC companies, with BoB, the group’s principal banker until around 2019, allegedly serving as the instrument.The application argues that the absence of a provision could impede enforcement of any decree, with the bank potentially citing risks to depositors, capital adequacy and regulatory standing. It seeks an urgent hearing ahead of BoB’s results for the quarter and half-year ended September 30, 2026.In the second application, Mr. Shetty seeks appointment of a court commissioner, assisted by an independent forensic expert, to image the bank’s electronic records and prevent their loss or alteration.Represented by Waseem Pangarkar of MZM Legal LLP, Mr. Shetty has yet to establish his allegations in court. BoB has not filed its reply. Published - October 29, 2026 08:55 pm IST