B.R. Shetty, founder of the NMC Healthcare group and UAE Exchange, has approached the Bombay High Court seeking $15 billion, or approximately Rs 1.44 lakh crore, in damages from Bank of Baroda and 25 other defendants over alleged fraud. The petition filed by the NRI businessman accuses the state-run lender and several of its officials of facilitating financial irregularities linked to NMC group entities and pursuing debt recoveries against him using guarantees that he contends bear forged signatures. In addition to the principal compensation, Shetty has claimed 18 percent annual interest from the date of filing the suit until the full settlement of dues.
Shetty has structured his compensation demand across three equal components of $5 billion each. The first tranche covers direct financial losses, while the second accounts for consequential damages arising from disrupted commercial operations and lost investment prospects. The final $5 billion represents compensation for severe reputational damage, commercial standing, and lost goodwill. The suit contends that the actions of the lender severely undermined Shetty’s global business interests and personal credibility over several years.
Claims of Facilitated Fund Diversion and Compliance Lapses
According to the High Court petition, Bank of Baroda acted as the lead banker to NMC Healthcare until approximately 2019. Shetty alleges that the institution’s involvement went well beyond standard commercial banking practices, claiming it enabled the diversion of capital across group firms and related entities masquerading as independent third-party suppliers.
The plea further asserts that the bank’s internal monitoring mechanisms generated upwards of 100 anti-money laundering alerts that were subsequently closed without rigorous investigation. Shetty claims the bank continued disbursing credit lines without securing sufficient collateral while failing to inform statutory auditors about mounting credit exposure and transaction irregularities. These contentions remain formal allegations presented in the petition and have not yet been evaluated or confirmed by the court.
Scrutiny Over Forged Signatures and Asset Disclosures
A central grievance in the lawsuit focuses on personal guarantees and credit agreements enforced against Shetty. The petition states that several core documents relied upon by Bank of Baroda carry forged signatures, which the lender accepted and acted upon without undertaking mandatory verification processes. Shetty maintains that multiple account mandates, transaction instructions, and substantial fund transfers took place without his authorization.
To substantiate his claims, Shetty has sought judicial directives compelling the bank to produce comprehensive documentation. This includes original account-opening records, know-your-customer filings, transaction logs, internal compliance logs, and the identities of bank personnel who authorized the disputed transfers. The petition also asks the court to restrain certain defendants from transferring Indian assets and to order disclosures regarding domestic firms, including Avitis Super Speciality Hospitals and SMARD Building Solutions, which Shetty claims absorbed diverted capital.
Rejection of Abu Dhabi Settlement Terms
The High Court filing also addresses external legal proceedings in the United Arab Emirates involving NMC group companies before the Abu Dhabi Global Market. Bank of Baroda entered into a settlement agreement in June 2026 with joint administrators, agreeing to pay roughly $600 million, or around Rs 5,700 crore, an arrangement formally disclosed on July 2, 2026, without any admission of liability.
Shetty maintains that because he was not a signatory to that Abu Dhabi agreement, it cannot extinguish his independent legal remedies or liability claims against the bank. He has also challenged the bank’s involvement in the issuance of a Look Out Circular against him. Bank of Baroda and Shetty could not be immediately reached for comment, and the High Court has yet to make any conclusive findings on the matters raised in the petition.
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