NMC Healthcare founder BR Shetty has filed a $15 billion lawsuit against Bank of Baroda and 25 other defendants at the Bombay High Court, accusing the state-owned lender of enabling financial transactions linked to the collapse of his business empire.
The 84 year old businessman, acting through his constituted attorney, Dr Shishir Shetty, alleges that the bank facilitated transactions that allowed former executives and their associates to divert funds, conceal liabilities and expose him to financial obligations through allegedly forged guarantees.
Bank Accused of Facilitating Financial Misconduct
In the civil suit, Shetty accuses Bank of Baroda of acting as an “instrument of fraud” in alleged financial misconduct involving NMC Healthcare, UAE Exchange, Neopharma and related companies.
He claims the lender failed to respond adequately to repeated anti-money laundering (AML) alerts despite warnings about suspicious financial activities involving the business groups.
According to the lawsuit, transactions between related companies enabled the movement of funds under circumstances that should have prompted greater scrutiny by the bank.
Shetty further alleges that accounts linked to purported sham suppliers were opened and operated to facilitate the diversion of money from the affected entities.
Former Executives Named in Allegations
The lawsuit also names former senior executives Prasanth Manghat and his brother Promoth Manghat, whom Shetty accuses, alongside other associates, of involvement in the alleged financial misconduct.
The claims centre on how transactions were handled, how liabilities were concealed and whether the bank’s compliance procedures adequately addressed warnings about potentially suspicious activity.
Shetty alleges that the lender’s actions exposed him to financial obligations, including those linked to guarantees he claims were forged.
The allegations have not been established as findings of wrongdoing by the court.
$15 Billion Claim Targets Bank’s Role
Through the lawsuit, Shetty seeks to address losses and liabilities he attributes to the alleged misconduct surrounding the collapse of NMC Healthcare and UAE Exchange.
The case places the bank’s handling of financial transactions and anti-money laundering safeguards at the centre of the dispute.
However, details of the specific remedies sought beyond the stated $15 billion claim were not provided in the available information.
Bank’s Response Remains Unclear
The filing marks a major legal challenge by the Indian origin entrepreneur against a state owned Indian lender over the collapse of businesses associated with his former corporate empire.
The available report does not indicate whether Bank of Baroda has filed a response to the allegations or provide details of the next court proceedings.
The case remains a civil dispute and Shetty’s claims against the bank and the other defendants are allegations that have yet to be established through the court process.
By Gladys Musyoka