B.R. Shetty has filed a $15 billion suit against Bank of Baroda and 25 other defendants over the collapse of NMC Healthcare.
The action extends a long-running legal conflict involving alleged fraud, undisclosed debt and competing claims over responsibility for NMC's collapse. It comes three months after Bank of Baroda agreed to pay $600 million to settle claims brought by NMC's administrators, while denying wrongdoing.
Bank of Baroda said it would defend any case brought by Shetty, the founder of NMC and UAE Exchange, and take the steps needed to protect its interests. Shetty's civil claim was filed in the Bombay High Court against the bank and 25 other defendants.
The bank said it had not been served with the suit and could not address pleadings it had not received. The allegations had not been tested in court.
"The bank has not been served with such a suit and cannot comment on the contents of pleadings, which are untested in court. If and when the bank is served, the bank will defend the suit firmly and take all steps necessary to protect its interests."
Shetty alleges that the bank and several current and former employees helped facilitate fraud linked to the collapse of the Middle East healthcare group. His allegations include claims that bank officials enabled round-tripping transactions, overlooked repeated anti-money laundering warnings and accepted documents with forged signatures.
The claim seeks $5 billion in direct damages, a further $5 billion in consequential damages and another $5 billion for reputational harm.
The dispute follows NMC's 2020 collapse
In 2020, financial mismanagement and the disclosure of debts worth $6.6 billion led to NMC Health, then the Gulf's largest private healthcare provider, being placed under administration. That figure was above an earlier estimate of $2.1 billion.
A separate account of the collapse says investigators found evidence of alleged fraud and undisclosed debt totalling billions of dollars before the NMC Group entered administration. The joint administrators later alleged that Bank of Baroda's UAE operations had helped facilitate financing arrangements that concealed debt.
Bank of Baroda has denied wrongdoing in the NMC matter. The bank's new response comes after it agreed to the settlement with the administrators, which was announced three months before Shetty's Bombay High Court claim.
The settlement affected the bank's quarterly results. Its Q1FY27 standalone net profit fell 72 per cent year-on-year to ₹1,278 crore, compared with ₹4,541 crore, because of the one-off payment connected to the settlement.
"The (settlement) decision was taken after carefully evaluating the matter from a commercial perspective. The settlement has been concluded without any admission of liability or wrongdoing."
Chand said the bank had a strong basis for agreeing to the settlement and that the terms could not be disclosed because the matter remains sub-judice in relation to other defendants.
"The bank believed it had a strong basis for entering into the settlement. Since the matter remains sub-judice with respect to other defendants, the settlement terms are confidential."
Earlier cases shape the bank's response
Bank of Baroda is seeking recovery from Shetty and pursuing enforcement proceedings in India and the UAE over outstanding dues. It has described the amount as 28 billion rupees ($294.5 million) in one account and as approximately ₹2,800 crore in another.
"The bank is itself pursuing recovery and enforcement proceedings in India and UAE against Dr. Shetty for outstanding dues of approximately ₹ 2,800 crore and has obtained several decrees against him. The High Court of Karnataka has also restrained Dr. Shetty from dealing with or alienating any of his assets in 2021. In subsequent proceedings before the National Company Law Tribunal, Dr. Shetty has asserted that he is insolvent and unable to meet the bank’s dues."
The bank said the Karnataka High Court barred Shetty from managing or transferring his assets in 2021, and that Shetty had told the National Company Law Tribunal he was insolvent and unable to settle amounts owed to the bank.
Bank of Baroda said Shetty had previously brought a similar case before the Supreme Court of the State of New York. That suit was dismissed in July 2024.
"Dr. Shetty had previously filed a suit against the bank in the Supreme Court of the State of New York, making allegations similar to those now reported in relation to the suit before the Bombay High Court. That suit was dismissed in July 2024. The bank continues to resolutely pursue its legal strategy under advice from reputed senior counsel and law firms and is taking all steps necessary to protect its interests."
The bank also linked the dispute to proceedings before the Abu Dhabi Global Market Court. It said judgment was reserved against Shetty and Prashant Manghat in claims involving fraud, wrongful trading and fraudulent trading.
"The matters described in the media reports are also the subject of proceedings before the Abu Dhabi Global Market Court, where judgment is reserved against Dr. Shetty and Mr. Prashant Manghat for fraud, wrongful trading, and fraudulent trading. Those matters are sub judice, and the bank cannot comment on the nature of allegations against Dr Shetty. The Abu Dhabi Global Market proceedings have been discontinued against the Bank pursuant to a settlement with the joint administrators of NMC Group."
The descriptions of the new Bombay High Court case differ in the available accounts. One says Shetty sued the bank and 25 other defendants, while the filing seen by Mint names 26 defendants in all: the bank, 10 officials of the bank, two Indian companies, the associates of former NMC executives Prasanth Manghat and Promoth Manghat, and the executives themselves.
The filing names Avitis Super Speciality Hospitals Pvt. Ltd. It also names SMARD Building Solutions Pvt. Ltd.
Different reports on the share-price reaction
Reported share move
Tuesday
2.6 per cent
- Reported after the legal action was reported
Reported share move
Wednesday, 14 October
3%
- Reported in morning trade after the filing
Bank of Baroda shares fell after the claim was reported, although the timing and size of the move differ between accounts. One report put the decline at 2.6 per cent on Tuesday, while another reported a 3% fall in morning trade on Wednesday, 14 October.
The shares opened at ₹235.95, against a previous close of ₹237.60. They later reached an intraday low of ₹230.45 after falling 3%.
The stock was down 16% over the last six months, while the BSE Bankex index was almost flat over the same period.
The bank had raised an earlier fraud alert
On 28 December 2020, Bank of Baroda informed the Reserve Bank of India of an alleged fraud in the loan account of UAE Exchange Centre, a group company of Shetty's. It said it had begun a forensic audit after adverse media reports about the BR Shetty Group accounts.
The chronology now runs from NMC's administration in 2020, through the New York case dismissed in July 2024, to the bank's settlement with NMC administrators and Shetty's new Bombay High Court claim filed on 13th October, 2026.
- 2020NMC enters administration
NMC Health was placed under administration after billions of dollars in debt and alleged fraud emerged.
- July 2024New York suit dismissed
Bank of Baroda said a similar case brought by Shetty was dismissed.
- Three months before the new suitSettlement agreed
Bank of Baroda agreed to pay $600 million to settle claims brought by NMC administrators.
- 13th October, 2026Bombay High Court claim filed
Shetty filed a $15 billion civil suit against Bank of Baroda and other defendants.
The immediate procedural question is whether Bank of Baroda is formally served with the case and how it responds under its stated legal strategy. The contents of the pleadings, the outcome of the Bombay High Court case and the confidential settlement terms remain unknown.
Representatives for Shetty did not immediately respond to requests for comment.
