Billion dollar battle to keep assets frozen for private hospital operator Business

NMC is the largest private healthcare provider in the UAE, but the bank said the defendants’ attempts to move the case to the Middle East were a “cynical” attempt “in an attempt to avoid justice. opened in an English court ”.

The bank’s legal team also argued that the complexity of the fraud allegations meant that “the burden of translation alone would be unspeakably heavy and proportionately costly” if the case took place in Abu Dhabi, where the disclosures and cons. -interrogations are limited and the proceedings are conducted in Arabic.

Arguments presented on behalf of Mr. Shetty said that the ADCB action in England was a “prime example of forum shopping” and that it was “clear” that the case should be heard in the United Arab Emirates.

He also claimed that the bank’s initial delay in seeking the freeze order showed no “real risk” of “dissipation” – the sale of assets that could be claimed by creditors.

Court documents showed that Mr. Shetty, who founded NMC in 1975, did not deny the alleged fraud “but denies having participated in it in any way or having knowledge of it at any material time”.

In July, the 79-year-old launched his own lawsuit in New York City against several banks, auditing firm EY and M. took a step back from the day-to-day management of NMC in 2012. EY vigorously denied these allegations.

The former investor darling entered the FTSE 100 in 2017, but his disgrace was sparked by a devastating December 2019 memo from hedge fund Muddy Waters, which bet against stocks.

The company warned of the “red flags” on the company’s cash position and warned, “We don’t know how far the rot goes, but we don’t think its people can be trusted. insiders or his finances. ”

The note triggered a share price collapse and Mr Manghat was ousted from his post as chief executive in February 2020.

The company came out of administration after a restructuring in September, but shareholders were devastated and unsecured creditors left billions in their pockets.

ADCB and legal representatives for Mr. Shetty and Mr. Manghat declined to comment. Judge Mark Pelling will rule on last week’s commercial court hearing in January.