Bank of Baroda Settles $600 Million UAE Healthcare Dispute with NMC Health
Bank of Baroda, one of India’s largest state-run banks, has agreed to pay a whopping $600 million to settle a years-long legal battle with the joint administrators of collapsed UAE healthcare company NMC Health, marking a significant conclusion to the lender’s involvement in one of the largest overseas litigation cases involving an Indian state-run bank.
Bank of Baroda’s $600 Million Settlement: What’s Behind the Move?
Despite the bank’s assertion that the settlement was reached without any admission of liability or wrongdoing, and was aimed at avoiding prolonged litigation, uncertainty and legal costs, the move has revived allegations by NMC founder B.R. Shetty, who has long accused senior Bank of Baroda officials of colluding with former NMC executives in a massive fraud that led to the healthcare group’s collapse.
The bank has consistently denied any wrongdoing, but Shetty’s allegations have raised questions about the bank’s role in the collapse of NMC Health.
What is the Case About?
The dispute stems from the collapse of London-listed NMC Health in 2020 after short-seller Muddy Waters questioned the company’s financial statements. Investigations later uncovered more than $4 billion of previously undisclosed debt, forcing the healthcare giant into administration.
The joint administrators subsequently sued Shetty, former chief executive of NMC health Prasanth Manghat, and Bank of Baroda before the Abu Dhabi Global Market (ADGM) Courts, alleging they were responsible for losses suffered by the company.
Market Impact: What Does the Settlement Mean for Bank of Baroda and NMC Health?
- The settlement resolves all claims against Bank of Baroda, whose liability in the proceedings is now capped at $600 million.
- The $600 million will go to NMC’s administration estate for distribution to creditors rather than to Shetty personally.
- The settlement is significant because it came before the court could deliver its verdict, and proceedings involving Shetty and former NMC executives continue separately.
Key Takeaways
- Bank of Baroda has agreed to pay $600 million to settle a years-long legal battle with the joint administrators of collapsed UAE healthcare company NMC Health.
- The settlement resolves all claims against Bank of Baroda, whose liability in the proceedings is now capped at $600 million.
- The $600 million will go to NMC’s administration estate for distribution to creditors rather than to Shetty personally.
FAQs
What are Shetty’s Allegations?
Shetty has maintained that he was himself a victim of fraud. His Indian counsel, Wasim Pangarkar, senior partner at MZM Legal LLP, has alleged that Shetty’s signatures were forged on several banking documents and that senior Bank of Baroda officials worked in collusion with former NMC executives.
What Did Bank of Baroda Previously Say?
The bank disclosed that based on legal advice, it believed it had a good chance of successfully defending the proceedings and therefore had not made any provision for the litigation, treating it as a contingent liability.
What Do the Administrators Say?
The administrators’ latest progress report dated 15 May 2026 said claims against Bank of Baroda and audit firm EY remained among the key recovery actions being pursued to maximise recoveries for creditors.
Conclusion
The settlement is a significant development in the long-running legal battle between Bank of Baroda and the joint administrators of collapsed UAE healthcare company NMC Health. While the bank has denied any wrongdoing, the allegations raised by NMC founder B.R. Shetty have raised questions about the bank’s role in the collapse of NMC Health. As the settlement comes to an end, it remains to be seen how this will impact the bank’s reputation and its ability to conduct business in the future.
