Meet Indian-born businessman who was forced to sell his Rs. 12,478 crore company for Rs 74

Pink Villa

7 hours ago

The story of a billionaire falling from their throne of power isn't new. The world of business sees rich men losing their glory in the blink of an eye all the time. However, the "rags to riches" story of the Indian-born businessman B.R. Shetty is rather a sad one. He once inspired entrepreneurs across the globe to chase their dreams and secured the spot of one of the wealthiest magnates in the world. But sadly, the man who once boasted an ultra-high net worth of over Rs. 20,000 Cr was left with nothing after making an unconsidered decision that caused irreversible damage to his name and assets.
A Brief Look at B. R. Shetty's Power and Loss of Status
Dr. Bavaguthu Raghuram Shetty was born in Udupi, Karnataka, India in 1942. He moved to the UAE when he was 31, reportedly with only a few dollars in his pocket. Shetty worked diligently to establish himself as the country's first medical representative. But he knew he did not want to settle for being a salesman. Several issues in the healthcare industry, including accessibility and cost, prompted the business mogul to embark on an entrepreneurial path, and he founded New Medical Centre Health in 1975. His journey was just getting started.
Under his leadership, NMC became the first private healthcare provider in the country and successfully entered the global market. As the company became an integral part of the London Stock Exchange and the FTSE 100 Exchange, B. R. Shetty never had to look back. It wasn't long before he acquired the ownership of UAE Exchange and Travelex. He was well-acquainted with prominent figures like A.P.J. Abdul Kalam and even had plans to invest USD 5 billion for the betterment of the healthcare infrastructure in India. He is the proud owner of several successful business ventures, including Neopharma, BRS Ventures, and Finablr, according to reports.
B.R.Shetty was once listed among Forbes' list of the richest men of India and lived in the lap of luxury. In 2019, his net worth reached USD 3 billion. He owned two floors in Burj Khalifa, and the Rolls-Royce collection was enough to evoke envy. So, where did it go wrong?
Things started to go downhill when Muddy Waters Research, a USA-based investment firm, brought some serious allegations against him. Allegedly, Shetty's firm had a USD 1 billion debt, which he kept hidden from the investors. He soon had to give up his place on the NMC Health Board, and the company went under UK administration. Abu Dhabi Commercial Bank also filed a complaint against NMC and the Central Bank of UAE ordered a restraint on all his bank accounts and his firms were blacklisted, an investigation is ongoing against the business tycoon in India.
B. R. Shetty is no longer a part of Forbes' billionaire list since 2020. Although he is nowhere near being poor, his current wealth doesn't hold a candle in front of his pre-2019 net worth. The accusations against him resulted in a price drop in shares, and he sold the business for Rs 74 to an Israel-UAE consortium. Shetty's rise and fall from grace almost imitate a tragic film. He was at the top once, but his fate played cruel tricks on him, and he lost everything almost overnight.