DIFC Courts orders NMC founder to pay State Bank of India $46 million

The Dubai International Financial Centre (DIFC) Courts ordered BR Shetty, the Indian businessman and founder of the NMC Healthcare group, to pay the State Bank of India $46 million (Dhs169 million) after finding that he had made false statements regarding his signing of a personal guarantee for a $50 million loan.

On Oct.8, Judge Andrew Moran delivered his ruling, describing Shetty's testimony as false and deeming his statements during the hearing on 29 September to be illogical and contradictory.

The case centred on whether Shetty had signed a personal guarantee for a $50 million loan to NMC Healthcare in December 2018. Shetty claimed that his signature had been forged, despite the bank's CEO testifying that he had been present when the document was signed.

However, in a 70-paragraph ruling, Judge Moran wrote: 'I find that there is compelling evidence from witnesses and documents that Mr. Shetty made false statements to this court by repeatedly denying that he had signed the personal guarantee.'

The court awarded the State Bank of India $45.9 million, including interest up to the date of the ruling, plus an additional 9% interest per annum until the debt is fully repaid.

During the trial, it was found that Shetty had initially denied any knowledge of the loan. However, he had to confess when the bank's lawyers confronted him with an email from May 2020 in which he had admitted to being aware of the personal guarantee and had requested time to review the documents.

The bank's CEO, Anantha Shenoy, stated that he travelled to NMC's Abu Dhabi offices on Dec.25, 2018 to witness Shetty signing the guarantee. He provided photographs and a detailed meeting report dated Jan.13, 2019 in which Shetty thanked the bank's chairman for the loan.

Shetty attempted to explain the photos by claiming that bank officials 'happened to be standing next to him' when they were taken and that the meeting was 'merely for acquaintance purposes.'

However, the judge rejected these justifications entirely, describing them as "disingenuous attempts to evade responsibility."