How Indian entrepreneur and NMC Health founder B.R. Shetty lost his $10 Billion empire

Bavaguthu Raghuram Shetty , born in Karnataka, India at his family's ancestral estate, Bavaguthu House in Udupi on 1 August 1942. Shetty came from a Tulu speaking Bunt family, the son of Shambhu Shetty and his wife Koosamma Shetty. Studying from a Kannada medium school, he completed his pharmaceutical education from Manipal in India. Later, he served as the Vice-Chairman of the Municipal Council in Udupi and got married to Chandrakumari Shetty and has four children.

Deemed by early financial troubles due to personal loans and expenses of his sister’s marriage, and failure to secure a stable government job seeking to repay debts and build a stable future, Shetty decided to seek his fortune in the newly forming United Arab Emirates. In 1973, Shetty immigrated with only 7 dirhams (approximately $8) in his pocket, seeking better opportunities. After working briefly as the country's first medical representative, he took a pioneering step by founding the New Medical Centre (NMC) in 1975. At that time, the clinic was modest, with his wife Chandrakumari Shetty as the sole doctor. He aimed to fill the gap in personalized, cost-effective healthcare accessible to all in the rapidly growing UAE.


B.R. Shetty’s $10 billion healthcare and finance empire

Starting with healthcare, NMC expanded beyond the UAE into Saudi Arabia, Oman, Europe, and Latin America, boasting over 45 medical facilities. Shetty diversified into financial services by launching UAE Exchange in 1980, targeting the huge expatriate community for money transfers, and founded Neopharma in 2003, creating a world-class pharmaceutical manufacturing unit in Abu Dhabi. His acquisition of Travelex in 2014, an international foreign exchange company, underpinned the group’s global footprint under the holding firm, Finablr .

The crowning commercial achievement came in 2012, when NMC Health became the first UAE healthcare firm listed on the London Stock Exchange. Valued initially at over $1 billion, NMC’s worth soared above $10 billion (36.7 billion AED) at its peak. Shetty’s personal net worth was estimated between $3.5 and $4 billion (12.85 to 14.68 billion AED), earning him honors like India’s Padma Shri and recognition across business communities globally. His lifestyle reflected his success, including luxury real estate in Dubai’s Burj Khalifa and exotic cars.


Timeline of B.R. Shetty’s $4 billion financial troubles

• December 2019: US-based activist short-seller Muddy Waters Research accused NMC Health of inflating cash balances and concealing billions in undisclosed debt, causing a severe crash in NMC’s share price and triggering regulatory scrutiny.
  
• Early 2020: NMC Health’s board publicly disclosed over $4 billion (14.7 billion AED) in previously undisclosed debt. Investigations revealed forged documents, unauthorized loans, and weak corporate governance, dating back several years.
  
• February 2020: Facing intense pressure, B.R. Shetty resigned from his positions at NMC Health. He claimed ignorance of hidden debts, blaming rogue executives, but evidence of large-scale financial mismanagement was overwhelming.
  
• February to April 2020: The financial crisis spread to related entities. UAE Exchange suspended operations, and Finablr faced insolvency. NMC Health was placed into administration by a UK High Court judge on April 8, marking a historic corporate collapse in the Middle East.
  
• 2020: Over 80 banks and creditors suffered severe losses, with Abu Dhabi Commercial Bank exposed to as much as $1 billion (3.67 billion AED). Thousands of employees and patients faced uncertain futures amid disruption of healthcare services across multiple countries.
  
• 2020-2023: Shetty’s assets were frozen in India and the UAE. Multiple lawsuits and investigations against him and his group were launched across jurisdictions, including allegations of fraud, forgery, and unpaid guarantees amounting to billions.
  
• 2021-2023: Shetty filed counter-lawsuits accusing former executives and auditors, including Ernst & Young, of complicity in concealing financial misdeeds. Investigations uncovered forged signatures, financial manipulations, and unauthorized personal guarantees on loans.
  
• October 2025: Dubai’s DIFC Court ordered Shetty to pay $46 million (169 million AED) to the State Bank of India relating to unpaid personal guarantees on a $50 million (184 million AED) loan from December 2018. The court condemned Shetty’s denials as “an incredible parade of lies,” citing conclusive evidence from emails, witness testimony, photographs, and handwriting experts. The judgment imposed a 9% annual interest, accruing over $11,000 (41,645 AED) daily until full repayment
  

Where B.R. Shetty and NMC Health stand now?

NMC Health continues operations under new ownership, separated from Shetty’s control. Meanwhile, Shetty remains embroiled in multi-jurisdictional legal battles, asset freezes, and efforts to clear his name although his once-lucrative empire has essentially dissolved, and his immense fortune has evaporated.

His story from arriving in the UAE with a few dirhams to building a global healthcare and financial empire, then facing one of the Gulf’s most dramatic corporate collapses is a complex saga of ambition, vision, mismanagement, and accountability. B.R. Shetty’s tale serves as a cautionary reminder about the crucial importance of transparent governance alongside entrepreneurial drive.