Bank of Baroda has responded to reports that businessman Bavaguthu Raghuram Shetty has filed a $15 billion lawsuit against the lender and 25 other defendants in the Bombay High Court, clarifying that it has not received the court papers and cannot comment on the allegations.
In a regulatory filing on October 14, the bank said it had taken note of reports that Shetty filed the suit on October 13. It added that it would defend the case firmly and take all necessary steps to protect its interests if formally served.
The lawsuit reportedly accuses the bank and several individuals of facilitating financial transactions linked to the collapse of Shetty’s business empire. The allegations have not been established in court.
According to the , Shetty has accused Bank of Baroda, several of its officials and other defendants of facilitating financial transactions linked to the collapse of his business empire. The lawsuit seeks $15 billion in damages over alleged financial irregularities, disputed banking transactions and reputational harm. The allegations have not been established in court.
BR Shetty’s $15 Billion Lawsuit: What Is The Case About?
BR Shetty, founder of NMC Healthcare and UAE Exchange, is seeking $15 billion in damages from Bank of Baroda, its officials and other defendants over alleged financial irregularities involving companies associated with his former business group.
According to the plaint, the claim comprises $5 billion in direct damages, $5 billion in consequential losses, including lost business opportunities, and another $5 billion for alleged reputational damage. The first two claims are against the defendants collectively, while the reputational damages claim is directed solely at . Shetty has also sought annual interest of 18%.
The suit names 26 defendants, including the bank, 10 of its officials, former NMC executives Prasanth Manghat and Promoth Manghat, their associates, and two Indian companies, Avitis Super Speciality Hospitals and SMARD Building Solutions.
BR Shetty Alleges Bank Of Baroda Ignored Money-Laundering Alerts
One of the principal allegations concerns the bank’s handling of suspicious transactions involving NMC Group accounts.
The plaint claims that the bank’s systems generated more than 100 alerts concerning these accounts but that the warnings did not lead to meaningful investigations, steps to stop transactions or reports to authorities.
Shetty also alleges that Bank of Baroda’s Abu Dhabi branch “advised the Manghat team how to structure and paper those transactions so that they would pass scrutiny”. The suit accuses the lender of executing “every leg of the roundtripping” of funds from NMC.
The filing further questions payments of approximately AED 42 million allegedly made to Prasanth Manghat between May 2018 and January 2019 through an account linked to Guide General Contracting and Maintenance.
Disputed Transactions And Alleged Forged Signatures
Shetty claims that certain banking instructions and signatures were used without his knowledge or authorisation. He has alleged that two accounts were opened in his name at the National Bank of Fujairah in December 2017 and March 2019 without his knowledge, using documents that allegedly contained forged signatures.
According to the plaint, the accounts were subsequently used to transfer money from group companies to the Manghat brothers, their associates and businesses they controlled.
Shetty also alleges that Bank of Baroda accepted instructions on his personal account from individuals who were not authorised to operate it, despite Joseph Pinto being its only authorised signatory. He further claims that the bank honoured cheques bearing forged signatures.
The suit also cites approximately AED 9.7 billion in payments from Nexgen to NMC accounts between 2012 and 2018, alongside around AED 3.2 billion in payments by Neopharma from 2015 onwards. Shetty questions whether these transactions were consistent with genuine supplier payments.
All these claims remain allegations and have not been proven in court.
$600 Million NMC Settlement Also Referenced
The plaint refers to a settlement between Bank of Baroda and the joint administrators of NMC Healthcare in June 2026. The settlement was valued at approximately $600 million, or ₹5,700 crore, and was disclosed on July 2, according to the filing.
Shetty argues that the settlement concerns the same underlying transactions and questions the bank’s subsequent pursuit of claims against him under personal guarantees whose validity he disputes.
The suit also seeks access to and preservation of bank records, information about the movement of funds and measures to protect certain defendants’ assets in India. The settlement does not, by itself, establish the allegations made against the bank.
Who is BR Shetty?
, which grew into the UAE’s largest private healthcare provider, and UAE Exchange, a financial services business.
NMC’s financial position came under scrutiny in December 2019 after short-seller Muddy Waters questioned its financial statements, debt and cash balances. In 2020, the company disclosed billions of dollars in previously unreported borrowings, with its debt later revised to approximately $6.6 billion.
The London-listed parent entered administration in April 2020, followed by NMC’s UAE operating businesses in September. The collapse triggered investigations and litigation involving lenders, executives and auditors.
Bank of Baroda has said it will defend itself if formally served with Shetty’s lawsuit.