NMC Health founder seeks settlement papers, security from Bank of Baroda in $15 billion suit

Two interim applications, affirmed on Thursday, have been filed in a commercial suit, in which the NMC Healthcare founder has accused the public sector lender and 25 other defendants of fraud, negligence and collusion.

In Short

• BR Shetty seeks disclosure of bank records, guarantees, communications with regulators
• Seeks preservation of electronic records across Bank of Baroda's global operations
• Suit alleges fraud, negligence, collusion, with bank yet to file its response

NMC Healthcare founder Dr Bavaguthu Raghuram Shetty has moved the Bombay High Court seeking a range of interim directions against Bank of Baroda (BoB), including security for his USD 15 billion damages claim, disclosure of a USD 600 million settlement with NMC's joint administrators, and forensic imaging of the bank's electronic records.

Two interim applications, affirmed on October 29, 2026, have been filed in a commercial suit, in which Shetty has accused the public sector lender and 25 other defendants of fraud, negligence and collusion.

In one application, Shetty has sought directions requiring Bank of Baroda to furnish security of USD 15 billion (approximately Rs 1.44 lakh crore), corresponding to the damages claimed in the suit, along with interest at 18% per annum.

Alternatively, he has asked the court to direct the bank to earmark the amount through a specific provision or reserve in its books and financial statements, or disclose the claim as a contingent liability in its balance sheet, annual report and other financial disclosures.

The second application seeks extensive disclosure and preservation of records held by the bank and ten of its officers.

Relying primarily on Order XI Rules 12 to 14 of the Code of Civil Procedure, Shetty has sought affidavits of documents from the bank and the concerned officers within four weeks, covering records relevant to the allegations in the suit.

Among the key demands is the appointment of a Court Commissioner, assisted by an independent forensic expert, to undertake forensic imaging of the bank's core banking, trade finance and SWIFT systems, emails, electronic devices and other relevant records.

The exercise is also proposed to cover records maintained at the bank's Abu Dhabi, Dubai and DIFC branches, as well as its GCC operations.

The application seeks preservation of the original electronic data, recording of hash values and maintenance of a proper chain of custody to prevent any alteration or deletion.

Shetty has also sought production of documents relating to two proceedings before the Abu Dhabi Global Market (ADGM) Courts, including pleadings, witness statements and expert reports.

Another significant demand concerns the agreement under which Bank of Baroda reportedly paid approximately USD 600 million (around Rs 5,700 crore) to NMC's joint administrators in June 2026.

The application seeks the settlement agreement, relevant board minutes, accounting records and communications with auditors, the RBI, SEBI, BSE and NSE.

The plea also seeks deposit of original guarantees and letters allegedly bearing Shetty's signatures for forensic examination.

It further requests a litigation hold on relevant records, suspension of routine deletion and backup-rotation policies, and an affidavit detailing the location of such records and any deletions since January 1, 2012.

Shetty has sought immediate preservation directions, with discovery to follow within four weeks or after the filing of written statements.

The applications also refer to the bank's earlier ADGM litigation with NMC's joint administrators, who had accused it of fraud and wilful negligence in its anti-money laundering and KYC processes.

According to Shetty's plea, the bank's FY26 annual report, published in May 2026, described its position in the proceedings as strong and made no provision for the claims.

However, the bank subsequently agreed to a USD 600 million settlement in June, which it disclosed to stock exchanges on July 2 under Regulation 30 of the SEBI LODR Regulations.

The settlement was stated to be without admission of liability, while its detailed terms remain undisclosed.

Shetty's underlying suit, filed on October 13, seeks USD 15 billion in damages under three heads: direct damages, consequential losses including loss of opportunity, and reputational damage and loss of goodwill.

He alleges that fraudulent transactions, round-tripping and forged or templated signatures were used to siphon funds from group companies after he relinquished control, and claims Bank of Baroda facilitated the transactions as NMC's principal banker until around 2019.

The allegations remain untested, and Bank of Baroda has not yet filed its reply to the suit.

- Ends