India's Bank of Baroda says it will defend interests after UAE businessman Shetty files $15bn suit

Bank of Baroda said on Wednesday it would safeguard its position, a day after UAE-based businessman B.R. Shetty, who founded NMC Health, lodged a lawsuit seeking $15 billion from the lender and 25 other parties at the Bombay High Court, Business Recorder reported. A court filing reviewed by Reuters says Shetty accuses the bank and several current and former employees of helping enable a fraud blamed for the downfall of the Middle East healthcare group.

In a stock exchange filing, the bank said it had not been served with the suit and could not comment on pleadings that have not been tested in court. It will defend the case firmly once served and take every step needed to protect its interests. The lender is also pursuing recovery proceedings in India and the UAE against Shetty over outstanding dues of Rs28 billion ($294.57 million), and has obtained several decrees against him.

Shetty is claiming $5 billion in direct damages, another $5 billion as consequential damages and a further $5 billion for harm to his reputation. The case centres on loans to NMC Health and linked UAE companies, three months after the lender reached a $600 million deal with NMC's administrators. The stock fell 2.6% on Tuesday when the suit surfaced, and on Wednesday it stood at Rs231.4, still down 2.6%.