2019–2020: NMC Health collapses after revealing $6B+ hidden debt; enters UK administration (April 8, 2020).
April 2020: Abu Dhabi Commercial Bank files complaint; B. R. Shetty admits “serious fraud,” blames insiders.
October 2020: Seeks probe by India’s Central Bureau of Investigation and Enforcement Directorate.
July 2021: Files $8B lawsuit against Ernst & Young and Bank of Baroda; dismissed in 2024.
Nov 2025: UAE court allows access to key Bank of Baroda AML records in NMC fraud case.
Indian-origin businessman B. R. Shetty, once celebrated as the founder of healthcare giant NMC Health, publicly admitted in April 2020 that “serious fraud” had taken place within his companies. He blamed a small group of senior executives for the wrongdoing.
Years later, new court rulings in the UAE have reopened access to sensitive bank records, potentially reshaping one of the Middle East’s biggest corporate fraud cases, involving more than $6 billion in undisclosed debt.
Here is the full chronology of events.
The crisis began in December 2019, when U.S.-based short seller Muddy Waters Research questioned NMC Health’s financial statements. The report alleged inconsistencies in debt reporting and raised governance concerns.
The revelations shook investor confidence. NMC’s share price plunged, and regulators began scrutinizing the company’s books.
By February 2020, internal reviews revealed that NMC’s liabilities were far higher than previously disclosed.
On March 24, 2020, the company confirmed it had uncovered over $6 billion in previously undisclosed debt. The announcement stunned markets and creditors.
On April 8, 2020, NMC Health entered administration in the United Kingdom, marking one of the largest corporate collapses in the Gulf region.
The collapse affected lenders across the UAE, India and Europe.
On April 15, 2020, Abu Dhabi Commercial Bank filed a criminal complaint in the UAE against B.R. Shetty and several former executives.
The bank reportedly had exposure of nearly 3 billion dirhams to NMC and alleged fraud and forgery.
Former NMC CEO Prasanth Manghat was among those named in legal proceedings.
On April 30, 2020, Shetty issued a public statement acknowledging that “serious fraud” had taken place within NMC and financial services firm Finablr.
However, he insisted he had no knowledge of the alleged manipulation. He claimed:
A “small group of executives” orchestrated the fraud
Signatures had been forged
Bank accounts were opened in his name without consent
Shetty maintained that he was not personally responsible.
In October 2020, Shetty wrote to Indian agencies including the Central Bureau of Investigation and the Enforcement Directorate, seeking a probe into what he described as a $6 billion fraud within his companies.
He accused former executives including Prasanth Manghat and Promoth Manghat and certain bankers of collusion and financial manipulation.
Shetty positioned himself as a victim of internal misconduct and banking irregularities.
On July 23, 2021, Shetty escalated the fight internationally. He filed an $8 billion lawsuit in New York against:
Auditor Ernst & Young
Bank of Baroda
Other financial institutions and executives
He alleged that audit failures and banking practices contributed to concealing the fraud.
In July 2024, a New York court dismissed Shetty’s case against Bank of Baroda, Credit Europe Bank and Ernst & Young.
The court ruled that the United States was not the appropriate jurisdiction for the dispute. Shetty said he would pursue legal remedies in Abu Dhabi instead.
On October 14, 2025, the UAE introduced Federal Decree-Law No. 10 of 2025, amending anti-money laundering provisions.
The new framework allowed confidential banking documents to be disclosed in certain civil proceedings, a significant shift from earlier confidentiality protections.
On November 26, 2025, Justice Sir Andrew Smith of the Abu Dhabi Global Market Courts ruled that administrators of NMC could access Bank of Baroda’s Suspicious Transaction Reports (STRs) and internal anti-money laundering documents.
Earlier AML protections had shielded such documents from disclosure. The 2025 amendment changed that.
The ruling may provide clarity on:
What the bank knew
When suspicious transactions were flagged
Whether adequate action was taken
In a related development, a court in the Dubai International Financial Centre ordered Shetty to pay $46 million to the State Bank of India.
The court found he had misrepresented facts under oath regarding a personal loan guarantee.
