Bank of Baroda pledges defense against UAE's Shetty lawsuit

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Bank of Baroda pledges defense against UAE’s Shetty $15B lawsuit

October 14, 2026

MUMBAI — India’s Bank of Baroda said on Wednesday it would defend its interests against a $15 billion lawsuit filed by UAE-based businessman and NMC Health founder B.R. Shetty against the lender and 25 other defendants in the Bombay High Court.

Shetty alleges that the bank and several current and former employees helped facilitate fraud that contributed to the collapse of the Middle Eastern healthcare group, according to a court filing reviewed by Reuters.

NMC Health, once the Gulf’s largest private healthcare provider, entered administration in 2020 after months of financial mismanagement. It disclosed debts of $6.6 billion, significantly above an earlier estimate of $2.1 billion.

In a stock exchange filing, Bank of Baroda said it had not been served with the lawsuit and could not comment on allegations that had not been tested in court.

It said it would firmly defend the case and take all necessary steps to protect its interests if formally served.

The bank added that it was pursuing recovery and enforcement proceedings in India and the United Arab Emirates against Shetty over outstanding dues of 28 billion rupees ($294.57 million). It said it had obtained several decrees against him.

India Dr Bavaguthu Raghuram Shetty NMC health 2016 — UAE-based businessman and NMC Health founder Bavaguthu Raghuram Shetty, 2016. Photo: Creative Commons/wikipedia

Bank of Baroda said it would face no immediate liability unless a court order required payment or it became necessary to make a provision for potential damages.

The bank’s shares fell 2.6% on Tuesday after news of the lawsuit emerged and were down another 2.6% at 231.4 rupees on Wednesday.

The lawsuit focuses on the bank’s lending to NMC Health and affiliated entities in the UAE.

It follows a settlement reached three months ago in which Bank of Baroda agreed to pay $600 million to resolve claims brought by NMC administrators.

Shetty alleges that bank officials facilitated round-tripping transactions, disregarded repeated anti-money laundering warnings and accepted documents with forged signatures.

According to the court filing, he is seeking $5 billion in direct damages, $5 billion in consequential damages and another $5 billion for reputational harm.

(With files from Reuters)