Founder B R Shetty sues Bank of Baroda for $15 billion over alleged fund diversion

B R Shetty, who founded the NMC Healthcare group, filed a petition in the Bombay High Court asking for $15 billion in damages from state-owned Bank of Baroda and 25 other defendants. He contends that the bank and former NMC leaders enabled the diversion of funds, hid liabilities and later pursued guarantees that bore forged signatures, seeking $5 billion each in direct and consequential damages and another $5 billion for reputational loss, plus 18% annual interest.

The suit lists BoB and ten of its officers, former NMC and UAE Exchange/Finablr executives Prasanth Manghat and Promoth Manghat, their spouses, and two Indian companies—Avitis Super Speciality Hospitals and SMARD Building Solutions—alleged to hold assets acquired with the diverted money. Shetty, who stepped down as CEO in March 2017 and relinquished control of the group in 2012, says he only learned in early 2020 that he remained chairman, prompting his resignation.

The complaint accuses BoB of ignoring AML alerts, extending credit without proper security, facilitating round-tripping transactions, and concealing exposure from auditors, including withholding balance confirmations from EY. BoB has not responded to the filing. Earlier in July, the bank settled related NMC Health litigation by paying $600 million, ending years of cross-border legal battles tied to the Gulf’s largest private healthcare provider’s collapse.