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[BUSINESS] · India, United Arab Emirates · 9 sources

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Bank of Baroda faces $15 billion lawsuit from NMC founder

Bank of Baroda B.R. Shetty NMC Healthcare Bombay High Court lawsuit

NMC Healthcare founder B.R. Shetty has filed a $15 billion lawsuit against Bank of Baroda and 25 other defendants in the Bombay High Court. The claim, which exceeds the bank's total market value, seeks $5 billion each for direct damages, consequential losses, and reputational damage, plus 18% annual interest.

Shetty alleges that bank officials facilitated the diversion of funds, ignored anti-money laundering alerts, and accepted personal guarantees with forged signatures. The petition further claims the bank provided unsecured loans and failed to disclose lending exposure to auditors.

Bank of Baroda stated it has not yet been formally served with the suit and cannot comment on specific allegations, but vowed to defend its interests vigorously. The bank noted it is currently pursuing Shetty in India and the UAE for outstanding dues totaling approximately Rs 2,800 crore.

This legal action follows a similar lawsuit filed by Shetty in New York, which was dismissed in July 2024. Additionally, the Abu Dhabi Global Market Court has reserved its verdict on separate claims of fraud and wrongful trading involving Shetty and former NMC executive Prashant Manghat.

Entities

B.R. Shetty · Bank of Baroda · Bombay High Court · Ernst & Young · NMC Healthcare · Prashant Manghat

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] Bank of Baroda shares fell by nearly 4% following the news of the lawsuit.
  • [● 2 SOURCES] The Abu Dhabi Global Market Court has reserved its verdict on fraud claims against Shetty and Prashant Manghat.
  • [● 2 SOURCES] A similar lawsuit filed by Shetty in New York was dismissed in July 2024.
  • [● 4 SOURCES] The lawsuit claims personal guarantees were secured using forged signatures. www.zoomnews.in · thecsrjournal.in
  • [● 4 SOURCES] B.R. Shetty filed a $15 billion lawsuit against Bank of Baroda and 25 other defendants in the Bombay High Court. www.zoomnews.in · thecsrjournal.in
  • [● 2 SOURCES] Bank of Baroda is pursuing approximately Rs 2,800 crore in dues from Shetty in India and the UAE.
  • [● 2 SOURCES] The lawsuit seeks $5 billion for direct damages, $5 billion for consequential damages, and $5 billion for reputational damage. thecsrjournal.in
  • [● 4 SOURCES] Shetty alleges bank officials ignored anti-money laundering alerts and facilitated fund diversion. www.zoomnews.in · thecsrjournal.in

Sources

Yes Bank Shares Crash 15% After Supreme Court AT1 Ruling [www.equitypandit.com]
Bank of Baroda: B R Shetty Files 1. 44 Lakh Crore Lawsuit Against Bank [www.zoomnews.in]
YES Bank shares fall 3% as CET1 ratio may fall 250 bps; Morgan Stanley, Citi targets - BusinessToday [www.businesstoday.in]
Yes Bank capital adequate after AT1 ruling but earnings hit looms [asianbankingandfinance.net]
Supreme Court Upholds Ruling Invalidating Yes Bank's $1 Billion Bond Write-Down [indusbusinessjournal.com]
IDBI Bank shares fall 6% after nearly ₹53,000cr deal [www.newsbytesapp.com]
Bank of Baroda shares plummet 4% after BR Shetty’s $15 billion lawsuit: Lender to fight [www.news9live.com]
Bank of Baroda Pursues Recovery of Rs 2,800 Crore from UAE Businessman B. R. Shetty Amid $15 Billion Lawsuit [yespunjab.com]
Bank of Baroda Responds to $15 Billion Lawsuit [thecsrjournal.in]