DIFC Court Orders NMC Founder to Repay $46 Million to State Bank of India

The Dubai International Financial Centre (DIFC) Courts have ordered Indian businessman and NMC Healthcare founder BR Shetty to pay the State Bank of India $46 million (Dh169 million) after determining that he made false statements about signing a personal guarantee for a $50 million loan.

The ruling, delivered by Judge Andrew Moran, described Shetty’s testimony as “false, illogical, and contradictory.” The case revolved around whether Shetty had personally guaranteed a $50 million loan to NMC Healthcare in December 2018. Shetty denied signing the guarantee, claiming his signature was forged.

However, the court found overwhelming evidence, including witness testimony and documents, proving otherwise. In a detailed 70-paragraph judgment, Judge Moran stated: “There is compelling evidence that Mr. Shetty made false statements to this court by repeatedly denying that he had signed the personal guarantee.”

The court awarded the State Bank of India $45.9 million, including accrued interest up to the ruling date, along with an additional 9 per cent annual interest until full repayment.

During the proceedings, it emerged that Shetty had initially denied knowledge of the loan but was confronted with a May 2020 email in which he acknowledged the personal guarantee and sought time to review the documents.

State Bank of India CEO Anantha Shenoy testified that he had travelled to NMC’s Abu Dhabi offices on December 25, 2018, to witness Shetty signing the guarantee. Shenoy also provided photographs and a detailed meeting report dated January 13, 2019, in which Shetty thanked the bank’s chairman for the loan.

Shetty later claimed that the photographs merely showed a social meeting, saying the bank officials “happened to be standing next to him.” Judge Moran rejected this defence, calling it a “disingenuous attempt to evade responsibility.”