BT Explainer: Why is Bank of Baroda facing a lawsuit from founder of NMC Health, BR Shetty?

More than three months after settling a case in the UAE involving NMC Healthcare, spotlight is once again on Bank of Baroda in the matter. BR Shetty, the founder of NMC Healthcare and UAE Exchange have filed a suit against the public sector lender and several officials in the Bombay High Court, seeking around $15 billion in damages.

Allegations are certain officials of the bank colluded with some of the group’s former executives to siphon off funds from the company.

Shetty in his complaint has alleged that Bank of Baroda officials facilitated transactions used to divert the funds from group companies. Allegations also are that the lender failed to act on multiple money-laundering alerts and that personal guarantees bearing his forged signatures were used, reports indicate.

MUST READ | Bank of Baroda shares fall 3% amid clarification on $15 billion lawsuit  

Bank of Baroda clarified on Tuesday that while it has seen media reports of a suit said to have been filed by Shetty in the Bombay High Court on 13 October 2026, it has not been served with such a suit and cannot comment on the contents of pleadings which are untested in court.

“If and when the bank is served, the bank will defend the suit firmly and take all steps necessary to protect its interests. The bank is itself pursuing recovery and enforcement proceedings in India and UAE against Shetty for outstanding dues of approximately Rs 2,800 crore and has obtained several decrees against him,” the lender said.

The matters described is also the subject of proceedings before the Abu Dhabi Global Market Court, where judgment is reserved against Shetty and Prashant Manghat for fraud, wrongful trading, and fraudulent trading, it pointed.

What was NMC Healthcare and what was Bank of Baroda’s connection?

Until a few years ago, NMC Health was among the largest private healthcare providers in the UAE. The firm was promoted by BR Shetty, a non-resident Indian (NRI).

The firm collapsed in 2020 after a forensic audit led to the discovery of billions of dollars in previously undisclosed debt. Bank of Baroda was among the major lenders to have had a large exposure to NMC Health’s operations in the UAE.

The collapse led to insolvency cases across multiple jurisdictions as administrators sought to recover creditor money. Insolvency proceedings were initiated before the Abu Dhabi Global Market Court and The High Court of Justice of England and Wales in relation to NMC Health and the other group companies.

Why had Bank of Baroda entered into a settlement in July?

Bank of Baroda in July entered into an out of court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding. The lender paid $600 million or around Rs 5,700 crore to settle the cases.

Bank of Baroda’s stand in relation to the settlement was that it was done to bring the disputes to conclusion thereby avoiding prolonged litigation, uncertainty and associated cost.

All claims, causes of action, etc, between them were resolved without admission of liability or wrongdoing. The Bank had also claimed that the liability of the bank in the proceedings was limited to this sum only.

DON'T MISS | BT Explainer: Why Bank of Baroda paid $600 mn to end a years-long NMC Health dispute 

Allegations of fraud

Charges that had been brought in against Bank of Baroda had been serious even in the Abu Dhabi Global Market Court.

Claims are brought against Bank of Baroda on the basis of allegations that it acted fraudulently and without proper care in contract (under Article 246 of the Civil Code) and in tort (under Articles 282 and 285 of the Civil Code), Abu Dhabi court documents mention.

Insolvency claims were also made by the joint administrators in fraudulent trading against Shetty, Prashant Manghat (former NMC executive) and Bank of Baroda, as per those documents.

Spotlight back on role of Bank of Baroda officials

Following the bank’s settlement, the proceedings in Abu Dhabi Global Market Court were discontinued. However, the complaint filed by BR Shetty against Bank of Baroda will once again raise questions on how the officials of the state-owned lender in the UAE acted in the matter. Perhaps now there will be a deeper investigation on whether as Shetty alleges officials of the bank were involved in facilitating some of the transactions and the bank ignored alerts.

The shares of the lender had closed up over 1% on Monday, but are down 20% year-to-date. The case may be another overhang for the lender.