BR Shetty vs ICICI Bank: Indian Tycoon Claims Foul Play Over $125 Million Loan Dispute

Bavaguthu Raghuram Shetty, the embattled Indian billionaire, has faced repeated setbacks in the last two months in a Dubai court. The Dubai International Financial Centre Court (DIFCC) has ordered Shetty to pay millions of dollars to two Indian banks over loans given to his now-bankrupt healthcare firms. 

Last week, the DIFCC ordered Shetty to pay $109 million for personal guarantees on loans taken by his now-insolvent healthcare chain, NMC Health. In January, the same court ruled that Shetty must pay $33 million to Bank of Baroda. 

However, Shetty told Mint that he never provided personal guarantees for the ICICI Bank loan and claims his signature was forged on the loan documents. 

“I am definitely filing an appeal against this judgment, and I’m very confident that it will be overturned by the appellate court,” Shetty told the newspaper. 

ICICI Loan and Dispute 

ICICI Bank had claimed over $125 million from Shetty based on personal guarantees he allegedly signed for loans extended to NMC and Modular Concepts. The trial, held in September and October 2024, focused on whether he had indeed signed these guarantees. 

The court ruled that the bank's claim under the personal guarantee for Modular Concepts failed, but the claim under the three NMC personal guarantees succeeded, amounting to over $106 million. 

Shetty argued that he had not been involved in NMC’s day-to-day management since stepping down as CEO in 2017. However, the bank’s case was strengthened by his acknowledgment of loans and financial dealings. Ultimately, the court ruled in favor of ICICI Bank, citing documentation and witness testimony.  

Earlier, Shetty was also ordered to pay over $33 million to Bank of Baroda. The DIFCC ruled him personally liable for the debt and imposed legal costs of $344,000, with interest if unpaid within 14 days. 

These cases are part of the ongoing legal aftermath of NMC Health’s collapse, which revealed $6.6 billion in hidden debt from over 80 financial institutions. Shetty has denied wrongdoing, claiming he was a victim of fraud. 

NMC Health, once the UAE’s largest private healthcare provider, was placed into administration in 2020 and restructured in 2022. PureHealth, the UAE’s largest healthcare group, had reportedly been in talks to acquire NMC but has since pulled out of the deal.