The companies promoted by Shetty owe ₹2,000 crore to BoB and ₹800 crore to PNB
In a setback to BR Shetty, NRI entrepreneur and promoter of UAE-based NMC Healthcare, the Karnataka High Court has rejected his plea against the Bureau of Immigration restraining him from leaving India.
This is based on the Lookout Circulars (LOCs) issued by two public sector banks. His companies owe around ₹2,800 crore to the banks.
In relation to the recovery of loans granted to companies promoted by him, the immigration authorities, on November 14, 2020, denied him permission to fly to Abu Dhabi from Bengaluru airport based on two LOCs issued by the Bank of Baroda and the Punjab National Bank in May and July respectively.
The companies promoted by Shetty owe ₹2,000 crores to BOB and ₹800 crores to PNB
Justice PS Dinesh Kumar dismissed the petitions filed by Shetty. “Unless, Shetty exhausts the remedy of approaching BOB and PNB and explains to them as to how the LOCs have been wrongly issued, and the banks pass any further orders, his prayer to permit to travel to Abu Dhabi cannot be considered,” the court said.
The court said that the petition is liable to be dismissed on the threshold because of the admission by the petitioner that he was the guarantor as “a guarantor is equally liable to repay the debt”. Moreover, the petitioner himself was the promoter of these companies, the court noted.
The companies promoted by Shetty owe ₹2,000 crores to BOB and ₹800 crores to PNB.
The court observed, “If Public Sector Banks are permitting such a large exposure without adequate securities, it is a matter of great concern, and it shall have a serious adverse impact on the economy of this country. It is time the lawmakers and RBI re-visit the lending guidelines and take necessary remedial measures to ensure that public money is well secured before disbursement.”
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