Bank of Baroda shares declined 3% in morning trade on the BSE on Wednesday, 14 October, a day after NMC Healthcare’s B.R. Shetty filed a lawsuit against the bank. Bank of Baroda share price opened at ₹235.95 against its previous close of ₹237.60 and dropped 3% to an intraday low of ₹230.45.
As Mint reported, Bavaguthu Raghuram Shetty, the founder of NMC Healthcare and UAE Exchange, has approached the Bombay High Court (HC) seeking $15 billion in damages from Bank of Baroda and several of its officials, alleging that they helped facilitate transactions linked to the financial fraud that led to the collapse of his business empire.
According to the filing seen by Mint, the suit names 26 defendants, including the bank, 10 of its officials, former NMC executives Prasanth Manghat and Promoth Manghat, their associates, and two Indian companies, Avitis Super Speciality Hospitals Pvt. Ltd and SMARD Building Solutions Pvt. Ltd.
Notably, in July, Bank of Baroda settled a legal battle with Abu Dhabi-based businessman BR Shetty for $600 million.
On 28 December 2020, the bank informed the Reserve Bank of India (RBI) of an alleged fraud committed by Shetty in the loan account of group company UAE Exchange Centre and said it had started a forensic audit after “adverse media reports on the BR Shetty Group accounts."