BR Shetty case simplified: Why bank records are now key focus in NMC case in UAE

Dubai: A new ruling by the Abu Dhabi Global Market (ADGM) court has added a new dimension to the legal fallout from the collapse of NMC Health, the healthcare group founded by Bavaguthu Raghuram Shetty.

The ruling does not decide guilt or wrongdoing. It deals only with access to information. The court said NMC Health’s administrators can seek certain internal records from Bank of Baroda that were previously protected by banking confidentiality.

At the center of the decision are bank documents linked to accounts connected to NMC entities. These include internal transaction records, compliance reviews, and reports filed with regulators about potentially unusual activity. Such material is usually not shared in civil court cases.

The ADGM court relied on recent changes to the UAE’s anti-money-laundering laws. Under these updates, courts can, in specific situations, order banks to share internal records during insolvency proceedings, especially when recovery efforts are involved. Earlier rules treated these records as strictly confidential.

NMC Health entered administration in 2020 after it disclosed more than $4 billion in previously undisclosed debt, triggering one of the UAE’s largest corporate collapses.

Since then, administrators and creditors have been trying to trace how money moved through the group, which lenders were involved, and how financing arrangements were structured. Bank of Baroda features in some of these disputes because it was among the banks linked to NMC’s borrowing.

Under the ADGM ruling, NMC’s administrators can ask for bank records that may show how transactions were handled, whether unusual activity was flagged, and what steps the bank took at the time.

The judge said such documents could be useful even if they show that no suspicious transaction reports were filed. In his view, that information could still help the court assess how the bank handled NMC-related accounts.

 The ADGM ruling comes as Shetty faces multiple legal battles linked to NMC’s collapse.

In October, a Dubai International Financial Centre (DIFC) court ordered Shetty to pay about $46 million to State Bank of India (SBI). The court found that he had repeatedly given false evidence about signing a personal guarantee for a $50 million loan granted to NMC Healthcare in 2018.

 The judge described Shetty’s testimony as misleading and inconsistent. The court accepted evidence from the bank, including witness testimony, emails, and photographs, showing that the guarantee was signed in the UAE.

That DIFC ruling was part of wider efforts by creditors to recover losses tied to NMC’s hidden debt. Claims linked to the group are ongoing in several jurisdictions. Shetty has said he was misled by former executives and has denied responsibility for the undisclosed borrowings.

The ADGM decision adds another layer to these proceedings by allowing closer examination of bank-related records linked to NMC’s financing.

The ruling does not automatically release any documents. It allows NMC’s administrators to apply for specific records.

Each request will still need court approval, and Bank of Baroda or other parties can challenge the scope or relevance of what is being sought.

The judge also noted that safeguards may apply. UAE authorities could object to disclosure if it risks interfering with ongoing regulatory or law-enforcement investigations.

Beyond the NMC case, the decision highlights how UAE courts are applying updated anti-money-laundering laws in large insolvency disputes.

It shows that banking confidentiality may not always block disclosure when courts are overseeing recovery efforts after major corporate failures.

For Shetty, lenders, administrators, and others involved, the ruling means that more internal financial records could become part of the legal process as courts continue to examine how NMC’s debts were built up and who was responsible for key decisions.