Judge cites ‘parade of lies’ after finding Shetty lied under oath about signing personal guarantee
A Dubai International Financial Centre (DIFC) court has ordered BR Shetty, founder of the collapsed NMC Healthcare, to pay $46 million to the State Bank of India (SBI) after concluding he repeatedly lied under oath about signing a personal guarantee for a $50 million loan, reported gulfnews.com.
Court finds overwhelming evidence against Shetty, rejects his claims of forgery.
Justice Andrew Moran, delivering judgment on October 8, described Shetty’s testimony as “an incredible parade of lies”, calling his evidence “incoherent and nonsensical” during the September 29 trial.
The case revolved around whether Shetty signed a personal guarantee in December 2018 for the loan. Shetty consistently claimed the signature was forged and denied ever meeting the bank’s CEO, who had witnessed the signing.
“I am bound to find that there is overwhelming witness and documentary evidence before me, which satisfies me that Mr Shetty has come before this Court and lied on oath in his multiple denials that he signed the Personal Guarantee,” Justice Moran wrote.
The judgment awards SBI $45,997,554.59, including interest to the judgment date, with additional interest accruing at 9% per annum until full payment.
Shetty initially denied knowledge of the loan
The court heard that Shetty first denied knowing about the loan but later admitted awareness after being confronted with an email from May 2020, in which he acknowledged ongoing discussions with the bank and requested time to review documents.
The bank’s CEO, Anantha Shenoy, testified he had traveled to NMC’s Abu Dhabi offices on December 25, 2018 to witness Shetty signing the guarantee.
Photographs and a detailed meeting report from January 2019 showed Shetty thanking the bank chairman for the loan. Shetty attempted to dismiss the evidence as mere networking photos, but the judge rejected this entirely
Bizarre claims and handwriting evidence
Shetty claimed that NMC employees held competitions to replicate his signature, with the “prize” being the suffering he is facing now. The court also reviewed expert handwriting analyses, which confirmed that Shetty’s signatures matched the documents. Justice Moran favored the bank’s expert, noting Shetty’s expert had been excessively cautious.
Background: NMC Healthcare collapse
The case is linked to NMC Healthcare’s 2020 collapse, which revealed over $4 billion in hidden debt. The company, once the UAE’s largest private healthcare provider, defaulted on interest payments in February 2020. Shetty resigned as joint non-executive chairman on February 16, 2020.
SBI’s legal pursuit
SBI issued formal demand notices in April and May 2020, which Shetty initially claimed never to have received. The bank filed the lawsuit in May 2020, with Shetty submitting his defense in October 2022.
