Abu Dhabi court finds BR Shetty liable in NMC case involving $5.39bn

An Abu Dhabi court has found Dr BR Shetty, the founder of NMC Healthcare, and the company's former CEO, Prasanth Manghat, to be liable for their roles in a fraudulent scheme that brought down one of the UAE's largest private healthcare groups. The commercial and civil division of the Abu Dhabi Global Market Court ruled that both individuals knowingly participated in the fraud between April 2, 2012 and April 9, 2020.

The court determined that they should contribute $5.39 billion towards reimbursing NMC Healthcare's assets related to their fraudulent activities. The ruling does not specify how this amount should be divided between the two men. The court also ruled in favor of Abu Dhabi Commercial Bank, which had its own case against Manghat for losses related to the NMC case.

The bank was awarded over $1.19 billion in damages, subject to adjustments. The fraud involved the misappropriation of NMC Group assets and the concealment of the company's true financial state. NMC Healthcare, founded by Dr Shetty in 1975, grew to become the UAE's largest privately owned healthcare operator before collapsing in 2020 after a report from short seller Muddy Waters revealed inflated asset values and understated debts. The case highlights the importance of financial transparency and accountability within businesses.