Latest news with #BRShetty
Gulf Insider
27-05-2025
- Business
- Gulf Insider
Indian Billionaire Sold ₹1.24 Lakh Cr Company for ₹74
The heartbreaking story of of BR Shetty, an Indian-origin businessman, who once owned several companies in the United Arab Emirates (UAE), had net worth of over Rs 12,000, and lived a life of prime luxury– is a profound example of how quickly one's fortunes can turn to ash due to one critical mistake, and send any person tumbling into the depths of obscurity. Who is BR Shetty? Born in a lower middle-income home in Udupi, Madras Presidency, then British India (now Karnataka, India), on August 1, 1942, Bavaguthu Raghuram Shetty, or BR Shetty as he is popularly known, was once among the wealthiest people on the planet, ranking on the Forbes list of India's 100 Richest People in 2015, and the 42nd richest person in 2019. BR Shetty began his career as a medical representative, and at age of 31, immigrated to Dubai, UAE in 1973 in search of better opportunities. Reports claim that Shetty came to Dubai with just $8 to his name, and worked as a door-to-door salesman, selling medicines. However, in short period, BR Shetty developed contacts with some wealthy and influential people, and a few years later, established the New Medical Center Health (NMC), UAE's first private healthcare provider company, in Dubai. UAE's first private healthcare provider The hospital was managed by BR Shetty's wife, Chandrakumari Shetty, who was the only doctor in the clinic, at the time. Today, NMC is the largest private healthcare provider in the UAE with over four million patients annually across 45 facilities spread over 12 cities and 8 countries, including UAE, KSA, Oman, Spain, Italy, Denmark, Colombia, and Brazil. NMC is also the first healthcare company from the Gulf Cooperation Countries (GCC) and the first company from Abu Dhabi to be listed on the premium segment of the London Stock Exchange and was part of the coveted FTSE 100 Index. However, the firm was de-listed from London Stock Exchange and removed from FTSE 100 index, following a request from its board of directors, and due to the on-going investigation of alleged financial irregularities. Apart from NMC, BR Shetty also founded the UAE Exchange, a company dealing in remittance, foreign exchange, and bill payment services. During the late 70s, Shetty observed that Indian expatriates living in UAE faced difficulties in sending money to their families back home in India, and thus landed upon the idea to establish the UAE Exchange, which in 2016, opened 800 offices in 31 countries. In 2003, BR Shetty founded NMC Neopharma, a UAE-based pharmaceutical manufacturer, which was inaugurated by the then President of India, A. P. J. Abdul Kalam in Abu Dhabi. BR Shetty – From riches to rags Over the years, BR Shetty's wealth ballooned thanks to owing to his diversified and successful business ventures which ranged from health, finance, to real estate, and capital investment. At one point, BR Shetty had a net worth of $3 billion (around Rs 20,000 crore), making him one of the wealthiest men globally. The Indian-born business tycoon lived a life of opulence, owned private jets and a fleet of Rolls Royce vehicles, and even bought two entire floors in the lavish Burj Khalifa, besides several luxurious villas across Dubai. However, fate took a cruel turn when in 2019, US-based short-seller Muddy Waters Research levelled damning allegations against BR Shetty's companies. In a post on X (former Twitter), the short-seller posted a report revealing that Shetty's firm owed a $1 billion debt which was kept secret from the company's investors. What did the short-seller's report claim? In its report, Muddy Waters Research alleged that Shetty had hid the debt from his investors and defrauded them by exaggerating cash flow figures. Following the allegations, the shares of Shetty's companies went into freefall, ultimately forcing him sell his Rs 12,478 crore company to the Israel-UAE consortium for just Rs 74. In 2020, amid investigations, BR Shetty resigned from his board position, and on April 8 that year, NMC Health went into Administration in the United Kingdom due to concerns over corporate governance and a share price in freefall. In the same month, Abu Dhabi Commercial Bank filed a criminal complaint against NMC Health with the UAE Attorney General's Office, and days later, the Central Bank of UAE ordered the freezing of Shetty's bank accounts and the blacklisting of his firms. The embattled businessman is also under investigation in India, with agencies initiating a probe to identify potential risks to Indian banks. According to reports, Shetty's current net worth is a minute fraction of his earlier $3.5 billion fortune, consequently leading Forbes to drop him from its annual list of billionaires in 2020. Also read: UAE Fines 23 Companies Dh610,000 For Violating Global Tax Reporting Rules
India.com
25-05-2025
- Business
- India.com
Meet Indian billionaire, owned two floors in Burj Khalifa, had Rs 18000 crore net worth, was forced to sell Rs 124000 crore company for just Rs 74 due to…
BR Shetty went bankrupt after a damning 2019 report by short-seller Muddy Waters Research exposed accused him of financial fraud. (File) The heartbreaking story of of BR Shetty, an Indian-origin businessman, who once owned several companies in the United Arab Emirates (UAE), had net worth of over Rs 12,000, and lived a life of prime luxury– is a profound example of how quickly one's fortunes can turn to ash due to one critical mistake, and send any person tumbling into the depths of obscurity. Who is BR Shetty? Born in a lower middle-income home in Udupi, Madras Presidency, then British India (now Karnataka, India), on August 1, 1942, Bavaguthu Raghuram Shetty, or BR Shetty as he is popularly known, was once among the wealthiest people on the planet, ranking on the Forbes list of India's 100 Richest People in 2015, and the 42nd richest person in 2019. BR Shetty began his career as a medical representative, and at age of 31, immigrated to Dubai, UAE in 1973 in search of better opportunities. Reports claim that Shetty came to Dubai with just $8 to his name, and worked as a door-to-door salesman, selling medicines. However, in short period, BR Shetty developed contacts with some wealthy and influential people, and a few years later, established the New Medical Center Health (NMC), UAE's first private healthcare provider company, in Dubai. UAE's first private healthcare provider The hospital was managed by BR Shetty's wife, Chandrakumari Shetty, who was the only doctor in the clinic, at the time. Today, NMC is the largest private healthcare provider in the UAE with over four million patients annually across 45 facilities spread over 12 cities and 8 countries, including UAE, KSA, Oman, Spain, Italy, Denmark, Colombia, and Brazil. NMC is also the first healthcare company from the Gulf Cooperation Countries (GCC) and the first company from Abu Dhabi to be listed on the premium segment of the London Stock Exchange and was part of the coveted FTSE 100 Index. However, the firm was de-listed from London Stock Exchange and removed from FTSE 100 index, following a request from its board of directors, and due to the on-going investigation of alleged financial irregularities. Apart from NMC, BR Shetty also founded the UAE Exchange, a company dealing in remittance, foreign exchange, and bill payment services. During the late 70s, Shetty observed that Indian expatriates living in UAE faced difficulties in sending money to their families back home in India, and thus landed upon the idea to establish the UAE Exchange, which in 2016, opened 800 offices in 31 countries. In 2003, BR Shetty founded NMC Neopharma, a UAE-based pharmaceutical manufacturer, which was inaugurated by the then President of India, A. P. J. Abdul Kalam in Abu Dhabi. BR Shetty – From riches to rags Over the years, BR Shetty's wealth ballooned thanks to owing to his diversified and successful business ventures which ranged from health, finance, to real estate, and capital investment. At one point, BR Shetty had a net worth of $3 billion (around Rs 20,000 crore), making him one of the wealthiest men globally. The Indian-born business tycoon lived a life of opulence, owned private jets and a fleet of Rolls Royce vehicles, and even bought two entire floors in the lavish Burj Khalifa, besides several luxurious villas across Dubai. However, fate took a cruel turn when in 2019, US-based short-seller Muddy Waters Research levelled damning allegations against BR Shetty's companies. In a post on X (former Twitter), the short-seller posted a report revealing that Shetty's firm owed a $1 billion debt which was kept secret from the company's investors. What did the short-seller's report claim? In its report, Muddy Waters Research alleged that Shetty had hid the debt from his investors and defrauded them by exaggerating cash flow figures. Following the allegations, the shares of Shetty's companies went into freefall, ultimately forcing him sell his Rs 12,478 crore company to the Israel-UAE consortium for just Rs 74. In 2020, amid investigations, BR Shetty resigned from his board position, and on April 8 that year, NMC Health went into Administration in the United Kingdom due to concerns over corporate governance and a share price in freefall. In the same month, Abu Dhabi Commercial Bank filed a criminal complaint against NMC Health with the UAE Attorney General's Office, and days later, the Central Bank of UAE ordered the freezing of Shetty's bank accounts and the blacklisting of his firms. The embattled businessman is also under investigation in India, with agencies initiating a probe to identify potential risks to Indian banks. According to reports, Shetty's current net worth is a minute fraction of his earlier $3.5 billion fortune, consequently leading Forbes to drop him from its annual list of billionaires in 2020.
Yahoo
23-05-2025
- Business
- Yahoo
EY faces $2.7bn lawsuit over alleged audit failures
Auditing giant EY is being sued for approximately £2bn ($2.7bn) by the main shareholders of United Arab Emirates (UAE) hospital operator NMC Health, Reuters reported. The 12-week trial at the High Court in London on 19 May 2025, centres on allegations that EY's audits from 2012 to 2018 were negligent, failing to uncover significant unreported borrowing by NMC's main shareholders. NMC Health, was listed in London in 2012 and promoted to the FTSE 100 in 2017, collapsed in 2020 after revealing more than $4bn in hidden debt. Administrators Alvarez & Marsal, appointed after NMC's collapse, argue that EY, formerly Ernst & Young, provided unqualified audit opinions during the period, despite missing billions in undisclosed debt and guarantees. Simon Salzedo, the lawyer representing NMC's administrators, described EY's audits as 'among the most fundamentally flawed examples of big-firm auditing' seen in a UK courtroom. He acknowledged that a single incorrect audit opinion does not necessarily constitute negligence but argued that issuing seven consecutive flawed opinions was difficult to justify. EY, however, denied the allegations of negligence. The firm's lawyers contend that EY was a victim of a 'pervasive and collusive fraud' orchestrated by NMC's senior personnel, including its principal shareholders, who manipulated the company's accounts to conceal the fraud from auditors. They argued that NMC's case relies on expecting auditors to achieve the 'impossible' in detecting such deception. The lawsuit follows other recent criticisms of EY's auditing practices, including its work for collapsed travel firm Thomas Cook and German payments company Wirecard. The administrators are seeking damages of around £2bn plus interest, down from an earlier claim of up to £2.7bn, primarily linked to undisclosed financial guarantees. Separately, NMC has initiated legal action against its founder, BR Shetty, who denies any wrongdoing, as well as other parties in London, the UAE, and the US. Earlier in May 2025,, EY launched Integrated Finance Managed Services, a solution designed to expedite enterprise transformation by leveraging SAP S/4HANA Cloud. "EY faces $2.7bn lawsuit over alleged audit failures" was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
EY ‘never even opened the books' in £2bn hospital ‘fraud'
EY has been accused of 'extremely serious' failings in its audit of failed hospital operator NMC Health. The 'big four' accountancy giant is battling claims that it failed to spot an alleged multibillion-pound fraud at the former FTSE 100 company, which was plunged into bankruptcy in 2020. Administrators at Alvarez & Marsal have since launched a £2bn lawsuit against EY in the High Court over claims that its shortcomings resulted in NMC's failure. In court documents released on Monday, EY is accused of allowing three of the company's biggest shareholders to steal billions of pounds. Lawyers have claimed that EY's accountants 'never even opened the books' during their time auditing NMC Health between 2012 and 2018. They argued: 'EY never gained access to the group's transaction-level records in a way that allowed them to be meaningfully audited, and did not identify the fact that a massive fraud was being committed by posting manipulated entries.' NMC Health was founded by Indian entrepreneur BR Shetty in 1974, who floated the business on the London Stock Exchange in 2012. At its peak, NMC Health owned 45 hospitals and 15 pharmacies throughout the UAE and Europe, including in the UK, Sweden and Latvia. However, the business collapsed after its three main backers, Dr Shetty, Khalifa bin Butti and Saeed bin Butti, allegedly extracted billions in cash. All three have denied wrongdoing. Dr Shetty has claimed he was a victim of a wider fraud. The High Court subsequently froze Dr Shetty's assets in 2022, including a luxury London penthouse. According to the court documents, management of NMC Health at the time put forward 'implausible and contradictory reasons' to prevent EY's auditors from accessing the company's accounts. EY's auditors instead relied on limited information about NMC Health's finances, obtained by 'looking at a single screen, over the shoulder of an NMC employee'. 'If EY … had obtained proper access to [NMC Health's] general ledgers, the fraud would have quickly become apparent,' the administrators have argued. 'The ledgers were littered with thousands of entries that had been manipulated and were on their face indicative of fraud, including the hidden borrowing.' US short seller Muddy Waters subsequently raised allegations of fraud in a report published in December 2019. Shares in NMC Health subsequently fell 32pc. The administrators have also accused EY's auditors of 'pulling the wool over the eyes' of the firm's own investigators by working to cover up their failures. EY has denied the claims and instead argued it was the 'principal target and victim' of the alleged fraud, and claims that the case is 'without merit'. 'Everyone to whom EY might realistically have turned for information about the finances of NMC was actually engaged in practising the wholesale deception of EY,' the firm has argued. EY has also accused the administrators of having 'shied away' from pursuing those who committed the alleged fraud, including the bin Butti brothers. Khalifa bin Butti said in 2020 that 'any suggestion that I have been involved in wrongdoing is categorically rejected', according to The Times. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
India.com
21-05-2025
- Business
- India.com
Meet The Person Who Once Had a Rs 18,000 Crore Empire, Owned 2 Floors In Burj Khalifa – Now Bankrupt Due to This…He is…
New Delhi: It sounds like a plot straight out of a Bollywood tragedy: a man arrives in a foreign land with just a few dollars in his pocket, builds a business empire worth billions, rubs shoulders with royalty, lives in the Burj Khalifa and then, almost overnight, loses it all. But this is not a fiction. This is the real-life story of Bavaguthu Raghuram Shetty, also known as BR Shetty, once a symbol of Indian entrepreneurial success in the United Arab Emirates (UAE), now a cautionary tale of how fortunes can vanish with one misstep. Shetty was born on August 1, 1942 at Udupi in Karnataka (then Madras Presidency under British India). Holding a degree in pharmacy and having big dreams, he moved to Dubai in 1973 at the age of 31 with just $8 to his name. He began as a medical representative, going door-to-door selling medicines. His hard work and charisma soon connected him with the right people. By 1975, he founded the New Medical Centre (NMC), UAE's first private healthcare clinic. It was a small clinic run by his wife, Dr. Chandrakumari Shetty, the only doctor at the centre. Building An Empire From that modest clinic, NMC Health exploded into a massive healthcare network, which now treats over four million patients every year across 45 facilities in 12 cities and eight countries – which include Colombia, Brazil, Spain, Oman and Saudi Arabia. Now, the NMC did not stay local, it became the first healthcare company in the Gulf to be listed on the London Stock Exchange. It joined the FTSE 100 Index, a spot reserved for the top 100 companies in the United Kingdom. But Shetty did not stop there. In the late 1970s, he noticed how hard it was for Indian expats to send money back home. That insight gave birth to the UAE Exchange, which would grow into one of the largest money transfer companies in the world. It operates in 31 countries with 800 offices. Then came NMC Neopharma in 2003, a pharmaceutical venture inaugurated by then-President APJ Abdul Kalam. Shetty's business interest expanded to finance, real estate and beyond. With each passing day, his empire became diverse, powerful and invincible. By 2019, BR Shetty's net worth hit $3 billion (around Rs 20,000 crore). He owned private jets, a fleet of Rolls Royce cars and two entire floors in the Burj Khalifa, the world's tallest building. His name was among Forbes India's 100 Richest People at 42nd rank in 2019. In short, he had it all: success, influence and unimaginable wealth. One Report That Changed Everything Disaster struck in December 2019. Muddy Waters Research, a US-based short-selling firm, published a damning report. It accused Shetty's companies of hiding $1 billion in debt and inflating cash flows to mislead investors and regulators. That single report sent shockwaves through the financial world. Investors panicked. Shares of NMC Health plummeted. Shetty's Rs 12,478 crore company was sold for just Rs 74 to an Israel-UAE consortium. Yes, you heard it right: not Rs 74 crore, just Rs 74. Shetty had resigned from NMC's board by early 2020. The company entered administration in the United Kingdom. Investigations began. Allegations of financial misconduct spread across the UAE and India. Legal Troubles Soon after, Abu Dhabi Commercial Bank filed a criminal complaint against NMC. The UAE Central Bank froze Shetty's accounts and blacklisted his firms. Indian agencies too launched probes into his financial activities, especially to assess exposure for Indian banks. All of it came crashing down: the empire, the reputation and the money. Forbes dropped him from its billionaire list in 2020. His current net worth is reportedly just a sliver of what it once was. Once hailed as a rags-to-riches icon, Shetty now lives in near-complete obscurity. Once in headlines for his business conquests, he is now featured in legal briefs and audit reports. His is a story of dreams fulfilled and then shattered and of ambition that soared and trust that crumbled. BR Shetty's journey highlights that even the grandest towers can fall when built on shaky foundations.
