Bank of Baroda pursues ₹2,800 crore recovery from NMC Health founder B.R. Shetty
Synopsis
NMC Health founder B.R. Shetty has filed a $15 billion suit against Bank of Baroda in the Bombay High Court — but the bank is already chasing him for ₹2,800 crore in unpaid dues across Indian and UAE courts. With prior suits in New York dismissed, ADGM proceedings reserving judgment, and Karnataka courts freezing his assets since 2021, Shetty's sweeping damages claim lands on a deeply hostile legal landscape.
Key Takeaways
Bank of Baroda is pursuing ₹2,800 crore in recovery proceedings against B.R.
Shetty in India and the UAE .
Shetty filed a suit in Bombay High Court seeking $15 billion in damages, alleging the bank facilitated fraud linked to NMC Health .
The Karnataka High Court restrained Shetty from alienating assets in 2021 ; he has since claimed insolvency before the NCLT .
A similar suit filed by Shetty in the Supreme Court of New York was dismissed.
ADGM Court proceedings against Bank of Baroda were discontinued after a settlement with NMC Group's joint administrators.
Bank of Baroda shares fell 2.6% to ₹231.40 in intraday trade on Wednesday.
Bank of Baroda on Wednesday, 14 October 2026, confirmed it is actively pursuing recovery and enforcement proceedings in India and the UAE against B.R. Shetty, the UAE-based businessman and founder of NMC Health, over outstanding dues of ₹2,800 crore. The public sector lender's statement came after Shetty filed a case in the Bombay High Court seeking $15 billion in damages, alleging that the bank and several of its current and former employees helped facilitate a fraud that contributed to NMC Health's collapse.
Bank of Baroda's Position
In a stock exchange filing, Bank of Baroda stated it had not yet been served with the suit and therefore could not comment on the contents of pleadings that remain untested in court. The bank added: 'If and when the Bank is served, the Bank will defend the suit firmly and take all steps necessary to protect its interests.'
The lender confirmed it has already obtained several decrees against Shetty through ongoing recovery proceedings across both jurisdictions. The bank also noted it will not bear any immediate liability until an order is passed or until it is required to make a provision on account of potential damages.
Courts and Prior Proceedings
The legal tangle spans multiple jurisdictions. The Karnataka High Court had restrained Shetty from dealing with or alienating his assets as far back as 2021. In subsequent proceedings before the National Company Law Tribunal (NCLT), Shetty reportedly asserted that he was insolvent and unable to meet the bank's dues.
Notably, Shetty had previously filed a similar suit against Bank of Baroda in the Supreme Court of the State of New York, which was dismissed. The current Bombay High Court filing marks the latest front in what has become a protracted, multi-country legal dispute.
The NMC Health Collapse
At its peak, NMC Health was the Gulf's largest private healthcare provider. The group was placed under administration in 2020 after months of financial mismanagement came to light. It subsequently disclosed debts of $6.6 billion — dramatically higher than earlier estimates of $2.1 billion — sending shockwaves through creditors across the region.
Shetty has alleged that Bank of Baroda and its employees were complicit in facilitating the fraud that accelerated NMC's downfall. The bank has consistently denied wrongdoing and pointed to its own recovery efforts as evidence of its position as a creditor, not a co-conspirator.
ADGM Court and Settlement
The matters have also been the subject of proceedings before the Abu Dhabi Global Market (ADGM) Court, where judgment has been reserved against Shetty and former NMC Healthcare CEO Prashant Manghat in proceedings concerning allegations of fraud, wrongful trading, and fraudulent trading. Significantly, the ADGM proceedings against Bank of Baroda itself were discontinued following a settlement with the joint administrators of the NMC Group — a development the bank highlighted as further evidence of its standing in the matter.
Market Reaction
Investors responded cautiously to the renewed legal uncertainty. Bank of Baroda shares fell 2.6% to ₹231.40 in intraday trading on the Bombay Stock Exchange (BSE) on Wednesday. This comes amid broader scrutiny of public sector bank exposures to legacy stressed accounts, and the market reaction suggests investors are pricing in at least a degree of litigation risk, even as the bank maintains it faces no immediate liability.
Point of View
His assets were frozen in India in 2021, and he has already told the NCLT he is insolvent. The more revealing fact is that Bank of Baroda secured a settlement with NMC's joint administrators at the ADGM, insulating itself from the administrator's claims, while still holding active decrees against Shetty personally. The 2.6% share-price dip signals that markets are not entirely reassured, but the bank's legal posture — spanning four jurisdictions and multiple decrees — appears considerably stronger than the headline suit implies. The real question is how much of the ₹2,800 crore is ultimately recoverable from a man who has publicly claimed insolvency.
NationPress
14 Oct 2026
Frequently Asked Questions
Why has B.R. Shetty sued Bank of Baroda in the Bombay High Court?
B.R. Shetty, the founder of NMC Health, has filed a case in the Bombay High Court seeking $15 billion in damages, alleging that Bank of Baroda and several of its current and former employees helped facilitate a fraud that contributed to NMC Health's collapse. The bank has stated it has not yet been served with the suit and will defend it firmly.
How much does Bank of Baroda claim B.R. Shetty owes it?
Bank of Baroda is pursuing outstanding dues of ₹2,800 crore from B.R. Shetty through recovery and enforcement proceedings in both India and the UAE. The bank has obtained several court decrees against him in connection with these dues.
What happened to NMC Health?
NMC Health, once the Gulf's largest private healthcare provider, was placed under administration in 2020 after prolonged financial mismanagement. It disclosed debts of $6.6 billion, far exceeding earlier estimates of $2.1 billion, triggering one of the region's largest corporate collapses.
Has B.R. Shetty sued Bank of Baroda before?
Yes. Shetty had previously filed a similar suit against Bank of Baroda in the Supreme Court of the State of New York, which was dismissed. The Bombay High Court filing is the latest in a series of legal actions across multiple jurisdictions.
What is the current status of the ADGM Court proceedings involving Bank of Baroda?
The Abu Dhabi Global Market (ADGM) Court proceedings against Bank of Baroda were discontinued after the bank reached a settlement with the joint administrators of NMC Group. Separately, judgment has been reserved at the ADGM Court against B.R. Shetty and former NMC Healthcare CEO Prashant Manghat on allegations of fraud and wrongful trading.
