NMC Healthcare founder Shetty demands $15bn damages from Bank of Baroda

B R Shetty, founder of healthcare provider NMC Healthcare, has initiated legal action seeking $15 billion in damages from Bank of Baroda, accusing the financial institution of complicity in financial misconduct at the now-collapsed company.

According to Shetty's allegations, Bank of Baroda collaborated with former NMC executives to facilitate the diversion of corporate funds while deliberately concealing mounting liabilities from stakeholders and regulators. The complaint further contends that the bank pursued recovery actions against Shetty on the basis of personal guarantees that allegedly bore forged signatures.

The claim represents one of the largest civil suits stemming from the NMC Healthcare collapse, which unraveled in 2020 following the discovery of massive accounting irregularities and hidden liabilities exceeding $4 billion. The company's implosion triggered widespread investigations and left creditors, employees and investors facing substantial losses.

Shetty's legal challenge puts considerable pressure on Bank of Baroda to respond to claims of institutional involvement in financial mismanagement at NMC. The case is likely to attract significant scrutiny from banking regulators and may have implications for the bank's governance and lending practices during the period in question.

The matter remains ongoing, with legal proceedings expected to determine the extent of Bank of Baroda's alleged involvement in the financial irregularities that precipitated NMC Healthcare's downfall.