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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."
In an exchange filing on 14 October 2026, Bank of Baroda said it had seen media reports of a suit said to have been filed by Bavaguthu Raghuram Shetty in the Bombay High Court on 13 October 2026. However, the bank emphasised that it had not been served with such a suit and cannot comment on the contents of pleadings which are untested in court.
The bank said it will defend the suit firmly, if an when served, and take all steps necessary to protect its interests.
In a post on social media platform X, the company said: "The matters described in the media reports are also the subject of proceedings before the Abu Dhabi Global Market Court, where judgment is reserved against Dr. Shetty and Mr. Prashant Manghat for fraud, wrongful trading, and fraudulent trading. Those matters are sub judice, and the bank cannot comment on the nature of allegations against Dr Shetty. The Abu Dhabi Global Market proceedings have been discontinued against the Bank pursuant to a settlement with the joint administrators of NMC Group."
"The bank is itself pursuing recovery and enforcement proceedings in India and UAE against Dr. Shetty for outstanding dues of approximately ₹2,800 crore and has obtained several decrees against him. The High Court of Karnataka has also restrained Dr. Shetty from dealing with or alienating any of his assets in 2021. In subsequent proceedings before the National Company Law Tribunal, Dr. Shetty has asserted that he is insolvent and unable to meet the bank’s dues."
"Dr. Shetty had previously filed a suit against the bank in the Supreme Court of the State of New York, making allegations similar to those now reported in relation to the suit before the Bombay High Court. That suit was dismissed in July 2024. The bank continues to resolutely pursue its legal strategy under advice from reputed senior counsel and law firms and is taking all steps necessary to protect its interests.”
The banking stock is down 16% in the last six months even as the BSE Bankex index is almost flat for the period. It recently hit a 52-week low of ₹223.90 on 29 September after hitting a 52-week high of ₹325.55 on 26 February this year.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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