Bank of Baroda Responds to BR Shetty's 15 Billion Dollar Lawsuit
Bank of Baroda has responded to reports of a 15 billion dollar lawsuit reportedly filed by BR Shetty, the founder of NMC Healthcare, in the Bombay High Court. The state owned lender said it has not yet been formally served with the suit and is therefore unable to comment on the details of the allegations.
In a regulatory filing on October 14, 2026, the bank said it had taken note of media reports concerning the case. It stated that the contents of the legal pleadings had not been tested in court and that it would defend the lawsuit firmly if and when it received the official papers.
The case marks another development in the long running legal disputes connected to the collapse of NMC Healthcare, which was once one of the largest private healthcare providers in the Gulf region. The lawsuit reportedly names Bank of Baroda and several other parties, including current and former officials, in connection with alleged financial irregularities involving companies associated with the healthcare group.
The allegations made in the lawsuit have not been established by a court. Bank of Baroda has rejected any suggestion that it will leave the claims unanswered and has said it will take the necessary steps to protect its interests.
What Does the Lawsuit Allege?
According to reports published on October 14, BR Shetty has sought a total of 15 billion dollars in damages from Bank of Baroda and other defendants. The claims relate to alleged transactions, financial liabilities and guarantees connected to NMC Healthcare and its associated companies.
The lawsuit reportedly seeks 5 billion dollars in direct damages, another 5 billion dollars in consequential damages and an additional 5 billion dollars for alleged reputational harm. Shetty is also reported to have sought interest and other forms of legal relief.
The filing reportedly alleges that certain former executives and bank officials facilitated the diversion of funds, concealed liabilities and failed to respond appropriately to warnings about potentially suspicious transactions. It also challenges the bank's reliance on personal guarantees that Shetty claims carried forged signatures.
Other allegations reportedly concern the handling of banking records, credit facilities and transactions involving supplier accounts. Shetty's case argues that these activities contributed to financial problems associated with NMC Healthcare and left him facing liabilities that he disputes.
These claims represent the plaintiff's allegations and should not be treated as established facts. The bank has said it cannot comment on the contents of pleadings that have not been tested in court.
Bank of Baroda Says It Will Defend Its Interests
In its response, Bank of Baroda said it would defend the lawsuit firmly if it was formally served. The bank also pointed to other legal proceedings involving Shetty and outstanding amounts it is seeking to recover.
According to the lender's statement, it is pursuing recovery and enforcement proceedings in India and the United Arab Emirates for outstanding dues of approximately 2,800 crore rupees. The bank has said it has obtained several legal decrees in connection with those recovery efforts.
The lender also referred to previous legal proceedings in which Shetty had made similar allegations against it. According to the bank, a case filed in the Supreme Court of the State of New York was dismissed in July 2024.
These earlier proceedings are separate from the newly reported suit in the Bombay High Court. Their relevance to the latest case, including any legal implications, will depend on the pleadings and the applicable legal process.
The bank has also said that it would not face an immediate liability arising from the new claim merely because the lawsuit has been reported. Any liability or accounting requirement would depend on subsequent legal developments and applicable requirements.
Background to the NMC Healthcare Collapse
NMC Healthcare expanded into a major healthcare provider in the United Arab Emirates and other markets in the Middle East. The group operated hospitals, clinics and related medical services and became a significant name in the region's private healthcare sector.
The company entered administration in 2020 after serious financial irregularities came to light. Its disclosed debts reached approximately 6.6 billion dollars, according to Reuters reporting. The collapse triggered investigations, insolvency proceedings and litigation involving former executives, creditors and financial institutions.
The disputes have involved questions about corporate governance, financial disclosures, lending arrangements and the handling of funds across multiple jurisdictions. Because the companies and parties operated internationally, related proceedings have taken place in different courts.
The latest lawsuit adds another legal dispute to that complex history. Its outcome will depend on the evidence presented, the responses from the defendants and the decisions made by the relevant court.
Earlier Settlement Involving Bank of Baroda
In July 2026, Bank of Baroda agreed to pay 600 million dollars to settle claims brought by administrators of companies within the NMC Group. The settlement addressed claims arising from the group's insolvency and related legal proceedings.
The settlement was reached without an admission of liability or wrongdoing by the bank. The parties agreed to resolve the claims covered by the settlement, and related proceedings against the lender in the Abu Dhabi Global Market courts and the High Court of Justice in England and Wales were discontinued.
Shetty's newly reported lawsuit is described as a separate claim. According to published reports, he argues that the earlier settlement does not resolve his individual claims because he was not a party to that agreement.
The existence of the earlier settlement does not by itself establish the allegations in the new lawsuit. The scope and legal effect of the respective claims will need to be assessed through the relevant legal proceedings.
What Happens Next?
The immediate next step will depend on the formal service of the lawsuit and the subsequent legal process. Once the bank receives the court papers, it can review the pleadings and respond through the appropriate legal channels.
The court will then consider the issues presented by the parties according to the applicable procedures. The filing of a lawsuit does not mean that the allegations have been accepted by the court or that the plaintiff has been awarded damages.
Investors and banking sector observers may continue to monitor regulatory disclosures and further developments in the case. Bank of Baroda shares reportedly came under pressure following news of the lawsuit, although share price movements can reflect several market factors and do not determine the merits of a legal claim.
The case highlights the continuing financial and legal consequences of the NMC Healthcare collapse. For now, Bank of Baroda maintains that it has not received formal court papers and will defend its interests if served. The allegations against the bank remain unresolved, and any final conclusions will depend on the legal process.
