MUMBAI: State-run lender Bank of Baroda has asserted that it will mount a robust defence against a reported ₹1.32 lakh crore damages lawsuit filed by NMC Healthcare founder B.R. Shetty, while clarifying that it has not yet received formal court documents in the matter. In a regulatory filing on October 14, the public sector bank stated that it cannot evaluate or comment on the claims without reviewing the pleadings, which remain untested before the judiciary. The legal action, reportedly lodged before the Bombay High Court on October 13, names the lender alongside 25 other entities and seeks massive financial redress for alleged corporate malpractices, unauthorized banking transactions, forged instruments, and reputational injury.
Scope of Allegations and Fund Diversion Claims
According to the plaint, Shetty has alleged that the lender facilitated transactions that siphoned funds away from companies within his corporate group. The lawsuit asserts that bank officials overlooked red flags on anti-money laundering mechanisms, disbursed unsecured credit lines, and withheld material lending exposures from statutory auditors. Crucially, Shetty has contended that the bank acted upon personal guarantees bearing forged signatures, arguing that he had already relinquished managerial control of the affected entities prior to the clearance of the contested credit facilities.
The litigation further accuses certain employees of the bank of operating Shetty’s private accounts without requisite authorization, claiming fabricated instruments were deployed to tie him to irregular transactions. Beyond the institution and its officials, the plaint arrays several co-defendants, including former NMC Healthcare and UAE Exchange executives Prasanth Manghat and Promoth Manghat, their business associates, and domestic entities such as Avitis Super Speciality Hospitals and SMARD Building Solutions.
Structure of the $15 Billion Damages Demand
The financial claims detailed in the October 2026 court filings aggregate to $15 billion, translating to approximately ₹1.32 lakh crore. In the first component, Shetty seeks $5 billion (about ₹44,000 crore) in direct and consequential damages jointly and severally from all named defendants, alongside an interest demand pegged at 18 percent per annum. In addition, the plaintiff has levied a discrete $5 billion claim specifically against Bank of Baroda, seeking compensation for enduring damage to his commercial reputation and personal goodwill.
These two primary heads, representing $10 billion (around ₹88,000 crore), are augmented by a further $5 billion claim to arrive at the cumulative figure. The lawsuit demands judicial orders directing the preservation of bank records, disclosure of fund trails linked to the disputed transactions, and protective measures against the Indian assets of certain defendants pending the outcome of the proceedings.
Lender Cites Lack of Service Amid Prior Settlement
The plaint also highlights a previous settlement concluded in June 2026 between Bank of Baroda and the joint administrators of NMC Healthcare. Disclosed to the markets on July 2, 2026, the resolution was valued at approximately $600 million, or nearly ₹5,700 crore, and was formalized without any admission of liability by the lender. Shetty has argued that this arrangement involved the exact underlying facilities now in contest, challenging the bank’s continued legal actions against him.
Bank of Baroda reiterated that it will examine the claims and initiate appropriate legal measures to safeguard its commercial interests as soon as the court papers are formally served. The lender emphasized that all allegations, claimed financial losses, and multi-billion-dollar liabilities remain unproven and subject to the final determination of the court.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
