Bank of Baroda said it would defend a $15 billion damages suit filed by NMC Health founder B.R. Shetty in the Bombay High Court. The case, filed on 13 October, names the Indian state-owned lender and 25 other defendants, according to a court filing reviewed by Reuters. Shetty alleged that bank officials helped facilitate fraud connected with the collapse of NMC Health, but the claims have not been established in court. The bank said on 14 October that it had not been served and could not comment on untested pleadings.
NMC Health entered administration in 2020 after disclosing debts of $6.6 billion, far above an earlier estimate of $2.1 billion. Shetty is seeking $5 billion in direct damages, $5 billion in consequential damages and $5 billion for alleged reputational harm. Bank of Baroda said it was separately pursuing recovery and enforcement proceedings against Shetty for 28 billion rupees in outstanding dues. The lender said it had obtained several decrees in those proceedings.
ALLEGATIONS REMAIN UNTESTED
The suit alleges that bank officials enabled round-tripping transactions, ignored anti-money-laundering warnings and accepted documents bearing forged signatures. Those are allegations made by Shetty and have not been tested by the Bombay High Court. Bank of Baroda’s exchange filing did not address the substance of the claims because it said the suit had not been served.
The bank said it would defend the case firmly and take all necessary steps to protect its interests if it is served. It also said no immediate liability would arise until a court order or a requirement to make a provision. Representatives for Shetty did not immediately respond to Reuters requests for comment.
PREVIOUS SETTLEMENT ADDS CONTEXT
The lawsuit follows Bank of Baroda’s agreement three months earlier to pay $600 million to settle claims brought by NMC administrators. The current case centres on the lender’s financing of NMC Health and affiliated entities in the United Arab Emirates. It therefore reopens scrutiny of events surrounding the healthcare group’s collapse while raising a separate claim against the bank in India.
The next milestone will be formal service of the suit and Bank of Baroda’s response to the Bombay High Court. Any judicial ruling, disclosure of the pleadings or decision on provisioning could clarify the lender’s financial exposure. Until then, the allegations and the $15 billion damages claim remain contested rather than established liabilities.