NMC Healthcare founder Dr BR Shetty has filed a multi-billion-dollar civil suit in the Bombay High Court against Bank of Baroda and 25 other defendants, accusing the state-run lender of facilitating one of the largest corporate frauds linked to the collapse of the NMC and UAE Exchange groups.
In the suit, valued at $15 billion (approximately Rs 1.44 lakh crore), Shetty, acting through his constituted attorney Dr Shishir Shetty, has alleged that Bank of Baroda served as an “instrument of fraud” through which former senior executives, including brothers Prasanth Manghat and Promoth Manghat, along with other associates, siphoned funds from group entities, concealed debt and exposed him to liabilities through allegedly forged guarantees.
The 84-year-old businessman, once among the most influential Indian-origin entrepreneurs in the Gulf, claims the bank ignored repeated anti-money laundering (AML) alerts, permitted suspicious round-tripping transactions, opened and operated accounts linked to sham suppliers, and failed to prevent large-scale diversion of funds between NMC, UAE Exchange, Neopharma and related entities.
BR Shetty, Founder, NMC Healthcare
| Photo Credit: RAJEEV BHATT
According to the plaint reviewed by businessline, Bank of Baroda’s internal teams and regulators had flagged concerns over KYC lapses and unusual transactions years before NMC’s collapse in 2020. The suit alleges that despite these warnings, the lender continued extending credit, rolled over facilities without adequate security, and concealed its true exposure from auditors.
Shetty has further contended that several loan guarantees relied upon by the bank bear forged signatures and that certain accounts were operated without his authorisation. He has cited forensic reviews, a graphologist’s reports and ongoing investigations by Indian enforcement agencies to support allegations that signatures and instructions were fabricated.
The lawsuit comes months after Bank of Baroda reached a settlement of about $600 million with NMC’s joint administrators in Abu Dhabi proceedings related to fraud and alleged AML failures. While the settlement was reached without any admission of liability, Shetty argues that it weakens the bank’s efforts to recover dues from him based on personal guarantees arising from the same set of facts.
Apart from direct and consequential damages, Shetty is also seeking an additional $5 billion from Bank of Baroda for the alleged loss of reputation and goodwill. He has further sought disclosure of banking records, preservation of electronic evidence, and attachment of assets allegedly acquired using diverted funds.
Dr BR Shetty is being represented by Waseem Pangarkar, Senior Partner, and Abhishek Gupta, Partner, at MZM Legal LLP. Email sent to Bank of Baroda seeking comment did not elicit any response till the time of publication.
Published on October 13, 2026
