THE founder of collapsed healthcare giant NMC Health, B R Shetty, is facing a $5.4 billion (£4bn) fraud trial in Abu Dhabi, with proceedings expected to run until the end of June.
The claim has been brought by Alvarez & Marsal, the firm appointed to administer NMC after it collapsed in 2020, and is being heard at the Abu Dhabi Global Markets Court, the Times reported.
Because of disruption caused by the conflict in the Middle East, proceedings are being conducted remotely.
The case centres on allegations that Shetty, the 83-year-old Indian founder of NMC, and Prasanth Manghat, its former chief executive, committed fraud against the company. The administrators also alleged that Bank of Baroda, one of India's largest banks, knowingly helped to facilitate it.
Shetty, who has returned to the United Arab Emirates from India, has previously insisted he is the "victim of a large-scale fraud" and denies any liability. Manghat, 51, has also denied wrongdoing. Bank of Baroda has previously declined to comment.
A separate fraud claim against Manghat brought by UAE bank ADCB is being heard at the same time. Related proceedings in the UK against all three parties have been put on hold pending the outcome of the Abu Dhabi trial.
NMC, which was headquartered in the UAE and operated in 19 countries including the UK, where it owned Aspen Healthcare, was once valued at £8.6bn on the London Stock Exchange.
Its collapse wiped out investors after a report by US short-seller Muddy Waters Research raised concerns about its accounting and governance. A subsequent investigation uncovered debts of $6.6bn (£5bn).
The presiding judge, Justice Sir Andrew Smith, ruled recently that the case would proceed without delay, noting that "the parties and the creditors of the NMC Group are entitled to have the claims resolved." He added that preparations had been long in the making and that significant expense had already been incurred.
Earlier this year, the administrators reached a confidential settlement with EY, NMC's former auditor, following a separate £2bn claim heard at the High Court in London. The £4bn claim also seeks interest and costs.
