India’s Bank of Baroda has vowed to defend its interests after UAE-based businessman B.R. Shetty filed a $15 billion lawsuit against the lender and 25 other defendants over alleged fraud linked to the collapse of healthcare group NMC Health.
The lawsuit, filed at the Bombay High Court, accuses the bank and some of its current and former employees of facilitating transactions that allegedly contributed to the company’s financial crisis.
Bank of Baroda said on Wednesday that it had not been formally served with the suit and could not comment on allegations that had yet to be tested in court.
The lender, however, stated that it would firmly defend itself if formally notified.
Shetty is seeking $15 billion in damages, divided into $5 billion for direct losses, $5 billion for consequential damages and another $5 billion for alleged reputational harm.
The allegations include claims that bank officials enabled transactions involving the movement of funds between related entities, ignored anti-money laundering warnings and accepted documents bearing forged signatures.
The claims have not been established by a court.
NMC Health, which was once among the largest private healthcare providers in the Gulf region, entered administration in 2020 after a financial crisis exposed debts of approximately $6.6 billion.
The latest lawsuit adds another layer to the legal disputes surrounding the company’s collapse and the financial arrangements involving its founder, lenders and affiliated businesses.
Bank pursues separate recovery proceedings
While preparing to defend itself against the new claim, Bank of Baroda said it was pursuing recovery and enforcement proceedings against Shetty in India and the United Arab Emirates over outstanding dues of 28 billion rupees, equivalent to approximately $294.6 million.
The bank also said it had obtained several decrees against the businessman as part of its recovery efforts.
The dispute follows a $600 million settlement the lender agreed to pay administrators of NMC Health and related entities about three months ago.
That settlement concerned claims arising from the healthcare group’s collapse and is separate from Shetty’s latest lawsuit.
The bank has maintained that it will take the necessary legal steps to protect its interests as the case progresses.
The outcome of the new lawsuit could have implications for the parties involved in the long-running NMC Health dispute.
However, the allegations against Bank of Baroda remain unproven, and the case will depend on the evidence and legal arguments presented before the court.
