India’s Bank of Baroda has said it will protect its interests after businessman B.R. Shetty filed a $15 billion lawsuit against the lender and 25 other defendants. The case was filed in the Bombay High Court and concerns the collapse of NMC Health, a major healthcare group once based in the United Arab Emirates.
Shetty, who founded NMC Health, alleges that Bank of Baroda and several current and former employees helped facilitate fraud linked to the company’s financial collapse. The claims were outlined in a court filing reviewed by media reports. The allegations have not yet been tested in court.
Bank of Baroda responded on Wednesday through a stock exchange notification. The lender said it had not been formally served with the lawsuit and could not comment on the details of the claims. It added that it would firmly defend the case and take all steps needed to protect its interests if it received the legal papers.
The bank also said it was pursuing recovery and enforcement proceedings against Shetty in India and the UAE. It is seeking to recover outstanding dues of 28 billion rupees, or about $294.57 million. According to the lender, it has already obtained several court decrees against the businessman.
NMC Health was once the largest private healthcare provider in the Gulf region. The company was placed under administration in 2020 after months of financial problems and disclosures of serious mismanagement. Its reported debt reached $6.6 billion, far above an earlier estimate of $2.1 billion.
The collapse raised major questions about the company’s finances, borrowing and oversight. The new lawsuit adds another legal dispute to the long-running fallout from the healthcare group’s failure.
Shetty’s case focuses on lending by Bank of Baroda to NMC Health and related companies in the UAE. He alleges that bank officials enabled transactions in which funds were moved through connected parties, a practice often described as round-tripping.
The lawsuit also claims that officials ignored repeated warnings related to anti-money laundering controls and accepted documents that carried forged signatures. These allegations form part of Shetty’s legal claims and have not been established as facts by a court.
Representatives for Shetty did not immediately respond to requests for comment. Bank of Baroda has said it will defend itself if it is formally served with the suit.
The case follows another major legal development involving the lender and NMC Health. About three months earlier, Bank of Baroda agreed to pay $600 million to settle claims brought by the administrators of the healthcare group.
The settlement concerned claims made by NMC’s administrators. The new lawsuit, filed by Shetty, is a separate legal action and raises allegations about the bank’s role in the company’s lending arrangements.
Bank of Baroda also said the lawsuit would not create an immediate financial liability for the lender. It said no such liability would arise unless a court issued an order or the bank became required to make a provision for potential damages.
The distinction matters because the size of a legal claim does not mean the defendant must immediately pay the amount sought. Any eventual financial impact will depend on the progress of the case, the evidence and any decisions by the court.
Investors reacted to news of the lawsuit by selling shares in the lender. Bank of Baroda shares fell 2.6% on Tuesday after the case was reported. The stock was down a further 2.6% at 231.4 rupees on Wednesday, according to the reported market figures.
The share price movement reflects investor concern about the legal dispute and the possible financial risks. However, the bank has stated that it does not face an immediate liability from the claim at this stage.
Bank of Baroda is India’s second-largest state-owned lender. The lawsuit adds to the scrutiny surrounding its past dealings with NMC Health and the wider questions raised by the group’s collapse.
The legal process will now determine how the allegations are examined and whether any liability can be established. Until the claims are tested in court, Shetty’s accusations remain allegations, while the bank says it will defend its position and continue efforts to recover the money it says is owed.
