Bank of Baroda has said it will defend its interests against a $15 billion lawsuit filed by BR Shetty, the UAE-based businessman who founded NMC Health, in the Bombay High Court. Shetty has accused the lender and 25 other defendants of helping facilitate fraud linked to the collapse of the healthcare group, according to a report by Reuters.
In a stock exchange notification on Wednesday, October 14, the public sector bank said it had not yet been served with the lawsuit and could not comment on allegations that had not been tested in court.
The bank stated that it would take all necessary steps to protect its interests if and when it received the legal notice.
What Has Bank of Baroda Said?
Bank of Baroda said it would firmly defend the lawsuit once formally served. It also highlighted ongoing recovery and enforcement proceedings against Shetty in India and the United Arab Emirates over outstanding dues of approximately ₹28 billion, or $294.57 million.
According to the bank, it has obtained several decrees against Shetty in connection with the dues. The lender also stated that it would not face immediate liability unless a relevant order was passed or a provision for potential damages became necessary.
The bank's position is outlined in its stock exchange filing.
What Is the $15 Billion Lawsuit About?
Shetty's lawsuit reportedly accuses Bank of Baroda and several current and former employees of facilitating fraudulent transactions connected to NMC Health. The allegations include enabling round-tripping transactions, disregarding anti-money laundering warnings and accepting documents bearing forged signatures.
According to the report, Shetty is seeking $5 billion in direct damages, $5 billion in consequential damages and another $5 billion for alleged reputational harm.
These claims remain allegations and have not been established through a court ruling. Bank of Baroda has said it cannot comment on pleadings that have not been tested in court.
NMC Health's Financial Collapse
NMC Health was once the largest private healthcare provider in the Gulf region. The company entered administration in 2020 following revelations of financial mismanagement.
It subsequently disclosed debts of $6.6 billion, substantially higher than the earlier estimate of $2.1 billion.
The latest lawsuit follows Bank of Baroda's reported agreement, three months earlier, to pay $600 million to settle claims brought by NMC's administrators.
Bank of Baroda Shares Decline
Bank of Baroda shares were trading at ₹231.70 at noon on October 14, down 2.48%, according to the report.
The lawsuit adds another legal development to the dispute surrounding NMC Health's collapse. Its potential financial implications will depend on the proceedings, the evidence presented and any eventual court decisions.
For official corporate information, visit Bank of Baroda.
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