DIFC Court Orders BR Shetty to Pay $46 Million Over Loan Fraud and Perjury

DUBAI –In a major legal development, the Dubai International Financial Centre (DIFC) Court has ordered Indian businessman Bavaguthu Raghuram (BR) Shetty to pay approximately $46 million after being found guilty of lying under oath regarding a personal guarantee tied to a $50 million loan.

The judgment, delivered by Justice Andrew Moran, described BR Shetty’s testimony as “an incredible series of lies and contradictory claims.” The court ruled that Shetty deliberately misled the court regarding a loan agreement signed in 2018 and provided false testimony under oath.

The DIFC Court ruling against BR Shetty is being seen as a landmark judgment in the Emirate’s fight against white-collar crime and financial misconduct, especially involving high-profile individuals.

At the heart of the case was a $50 million loan obtained in 2018, which BR Shetty had personally guaranteed. However, during court proceedings, Shetty denied the existence of the personal guarantee and claimed that the signatures presented in court were forgeries.

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Justice Moran dismissed these claims after examining photographic and documentary evidence, including authenticated signatures, email trails, and Shetty’s prior acknowledgments.

“The defendant’s account was an elaborate web of dishonesty,” Justice Moran remarked during the hearing. “This was not a misunderstanding—it was a clear and intentional attempt to mislead the court.”

In addition to the $46 million principal, the DIFC Court also imposed a 9% annual interest penalty, amounting to approximately $11,341 per day until the full amount is repaid. This brings the potential financial burden on Shetty to well over $50 million, depending on how long the repayment is delayed.

This interest penalty is in accordance with the court’s efforts to discourage perjury and ensure compliance with financial obligations in the DIFC legal framework.

BR Shetty is widely known in the UAE as the founder of NMC Health, once the country’s largest private healthcare network. He established the business in 1975, and by the 2010s, NMC was listed on the London Stock Exchange with a multibillion-dollar valuation.

However, in 2019, a massive scandal erupted after it was revealed that $4.4 billion in previously undisclosed loans were taken under NMC’s name. The revelation triggered one of the biggest financial collapses in UAE history. BR Shetty resigned from his position and later left for India.

The DIFC Court ruling against BR Shetty marks a pivotal moment in Dubai’s legal history, reinforcing the principle that no individual is above the law. With a $46 million penalty, daily interest accumulation, and reputational damage, BR Shetty now faces not only financial consequences but also a lasting legacy tied to one of the region’s most dramatic corporate collapses.