Bank of Baroda Says It Has Not Received BR Shetty’s $15 Billion Lawsuit and Will Contest the Case

Summary:
Bank of Baroda said it has not yet received a reported $15 billion lawsuit filed by NMC Healthcare founder Bavaguthu Raghuram Shetty in the Bombay High Court against the bank and 25 other defendants over alleged fraud. Shetty accuses the lender and some officials of facilitating fraud involving companies linked to his business empire and pursuing him using allegedly forged personal guarantees. His claim includes $5 billion each for direct losses, consequential damages and reputational harm, along with 18% annual interest. The bank said it would firmly contest the case and take necessary steps to protect its interests if formally served. 

Bank of Baroda said on Wednesday that it had not received a lawsuit reportedly filed by NMC Healthcare founder Bavaguthu Raghuram Shetty in the Bombay High Court, seeking $15 billion in compensation from the bank and 25 other defendants over alleged fraud.

In a regulatory disclosure, the lender acknowledged media reports concerning the case, which was reportedly filed on October 13. However, it said it could not “comment on the contents of the pleadings which are untested in court.”

The bank stated that if it receives formal notice of the lawsuit, it will contest the proceedings vigorously and take all necessary measures to safeguard its interests.

Shetty, who also established UAE Exchange, is seeking $15 billion in damages. He alleges that the bank and certain officials helped facilitate fraud involving companies associated with his business group and initiated action against him based on personal guarantees that he maintains were forged.

According to the plaint, the compensation sought comprises $5 billion for direct financial losses, $5 billion for consequential losses, including missed business and investment opportunities, and a further $5 billion for alleged harm to his reputation, commercial standing and goodwill.

Shetty has also requested interest at an annual rate of 18% on the claimed amount, calculated from the date the lawsuit was filed until the damages are paid.