Meet BR Shetty, who once owned Rs 880000000000 empire in Dubai, lost all his money due to…, court slaps him Rs 408 crore fine over…
Indian businessman B.R. Shetty, one of the well-known entrepreneurs in the UAE, has suffered a major setback after the Dubai International Financial Centre (DIFC) Court has ordered him to pay 168.7 million dirhams (around Rs. 408 crore) to the State Bank of India’s DIFC branch. The court found that Shetty had lied under oath. He had denied signing a personal guarantee for a loan worth 183.5 million dirhams, but the court ruled that evidence clearly proved he had signed it.
In a judgment issued on October 8, Justice Andrew Moran described Shetty’s testimony as “an unbelievable display of lies.” The judge said Shetty’s statements during the September 29 hearing were “inconsistent and absurd.” The court also stated that the documents and witness accounts provided strong proof that Shetty had indeed signed the guarantee in December 2018, making him personally responsible for the debt.
Once the owner of a company worth USD 10 billion (about Rs. 88,000 crore), Shetty’s business empire has now completely collapsed.
Early life of BR Shetty:
B.R. Shetty was born on August 1, 1942, in Udupi, Karnataka. In his early years, he struggled financially due to family debts and the expenses of his sister’s wedding. He moved to Dubai in 1973 with just USD 8 (around Rs. 700) in his pocket, hoping to find better opportunities. He first worked as the UAE’s first medical representative, and in 1975, he founded the New Medical Centre (NMC). At that time, it was a small clinic where his wife, Dr. Chandrakumari Shetty, was the only doctor. Their goal was to provide affordable and accessible healthcare to the rapidly growing population in the UAE.
Expanding his business in Dubai:
Starting from healthcare, NMC soon grew beyond the UAE, reaching Saudi Arabia, Oman, Europe, and Latin America. The group eventually operated more than 45 medical facilities. In 1980, Shetty entered the financial services sector by launching UAE Exchange, which aimed to make money transfers easier for the large expatriate community living in the Gulf.
Later, in 2003, he founded Neopharma, a pharmaceutical company that set up a world-class manufacturing unit in Abu Dhabi. Then, in 2014, he acquired the international foreign exchange company Travelex, further expanding his group’s global presence under his holding firm Finablr.
BR Shetty at his peak
B.R. Shetty reached the peak of his success in 2012, when NMC Health became the first UAE-based healthcare company to be listed on the London Stock Exchange. At the time of listing, the company was worth over USD 1 billion, and at its highest point, its value rose above USD 10 billion. Shetty’s personal wealth was estimated to be between USD 3.5 and USD 4 billion.
He received several honours, including India’s Padma Shri, and earned global recognition in the business world.
The downfall of BR Shetty
However, this success did not last long. In December 2019, US-based activist short-seller Muddy Waters Research accused NMC Health of inflating its cash reserves and hiding billions in debt. The company’s stock price crashed soon after, and regulators began investigating.
By early 2020, NMC Health’s board publicly admitted that the company had over USD 4 billion in hidden debt. Investigations revealed fake documents, unauthorized loans, and years of weak corporate governance. Under growing pressure, Shetty resigned from all positions at NMC Health in February 2020.
Assets frozen and legal troubles
Between 2020 and 2023, authorities in India and the UAE froze Shetty’s assets. He and his companies faced multiple lawsuits and investigations for fraud, forgery, and failure to repay large guarantees. From 2021 to 2023, Shetty filed counter-cases against former executives and the auditing firm Ernst & Young (EY), accusing them of helping hide financial irregularities. Investigations uncovered forged signatures, financial manipulation, and unauthorized personal guarantees on loans.
What happened to his companies?
Today, NMC Health operates under new ownership and is no longer controlled by Shetty. Meanwhile, Shetty continues to fight legal battles in several countries, with his assets frozen and his business empire now almost completely gone.