A. SREENIVASA REDDY (ABU DHABI)
The Abu Dhabi Global Market (ADGM) Court of First Instance found Dr Bavaguthu Raghuram Shetty, known as BR Shetty, and Prasanth Manghat, NMC Group’s former chief executive officer, liable for fraudulent and wrongful trading in proceedings arising from a fraud perpetrated against the group.
In its judgment issued on November 5, 2026, Justice Sir Andrew Smith found that the two men “dishonestly and knowingly participated in the fraud”, according to the court’s judgment summary.
The fraud, perpetrated between April 2, 2012, and April 9, 2020, involved the misappropriation of NMC Group assets and concealment of its true financial position, including through substantial undisclosed borrowing.
The action against the two men was brought by NMC Healthcare Limited (NMCH), NMC Holding Limited and their joint administrators. NMCH, NMC Holding and 34 ADGM companies subsequently entered administration.
The claimants pursued UAE law civil and fraudulent and wrongful trading claims under the ADGM Insolvency Regulations 2022. They also succeeded in their UAE civil claims against both men.
The court found that Shetty dishonestly participated in the fraud throughout the period, including by knowingly receiving substantial sums improperly transferred from the NMC Group and acquiring assets using the transferred funds.
His participation also included failing to disclose securities that supported personal facilities, allowing misleading financial statements to be published and assisting in concealing NMC Group borrowings from Ernst & Young, according to the summary.
The court also found that Manghat was a dishonest party to the fraud throughout the period. This included knowingly facilitating the unlawful misappropriation of funds from the NMC Group for the benefit of Shetty, himself and others.
Manghat also knew that the group was disguising the misappropriations by producing false financial statements and concealed NMC Group borrowings from Ernst & Young, the summary said.
The court held that both men were knowingly party to the business of the NMC Group being carried on fraudulently during the period. It also held that they were liable to make a contribution to NMCH’s assets on the basis of wrongful trading.
For fraudulent trading, the court identified $5.397 billion as the starting point for determining the appropriate contributions.
The judgment also addressed a separate action brought by Abu Dhabi Commercial Bank (ADCB) against Manghat, in which the bank pursued UAE law claims.
The court held that ADCB established Manghat’s liability under Articles 282 and 285 of the UAE Civil Code and Article 84 of the UAE Commercial Companies Law 2015. It held that the bank established its claims, including damages for outstanding liabilities and lost profits.
The court upheld ADCB’s claims against Manghat and the claims brought by NMC Healthcare, NMC Holding and their joint administrators against Shetty and Manghat.
A further hearing will be conducted to determine certain outstanding matters, including consequential issues, according to the summary.