Two former NMC Healthcare leaders face an unresolved contribution assessment after the Abu Dhabi Global Market (ADGM) Court of First Instance found them liable for fraudulent and wrongful trading.
The defendants are founder Bavaguthu Raghuram Shetty and former CEO Prasanth Manghat. Justice Sir Andrew Smith set US$5.397 billion as the starting point for assessing contributions to NMC Healthcare Ltd.'s assets, but left each man's amount for a later decision. The figure is not a final award or the court's stated total for fraud losses. Any contribution would go to NMC Healthcare Ltd.'s assets, which the judgment places within an administration process serving creditors.
Smith's findings say both men knowingly took part in the fraud. The judgment covers conduct from April 2, 2012, to April 9, 2020; for contribution calculations, it uses April 30, 2012, as the start of fraudulent trading.
At Dec. 31, 2018, NMC's total debt excluding bonds and sukuk was AED21.6027 billion, or about US$5.881 billion, the court found. The company's accounts showed AED7.3192 billion (about US$1.993 billion), while another AED14.2835 billion (about US$3.888 billion) was unreported.
More than 500 transfers to accounts in Shetty's name during the relevant period totaled AED4.183 billion. After payments back to NMC Group were accounted for, their net value was about AED2.6 billion. The court said undisclosed borrowing helped conceal misappropriations, pay borrowing costs and provide cash to support inflated revenue.
NMC plc began trading in London in 2012; five years later, it entered the FTSE 100. Muddy Waters Capital questioned its accounts in December 2019. NMC plc disclosed US$2.7 billion in previously undisclosed or unapproved debt on March 10, 2020, and a further US$1.6 billion on March 24. The English High Court placed the company into administration on April 9, 2020.
The judgment also found that Abu Dhabi Commercial Bank had established claims against Manghat under UAE law, including claims related to outstanding liabilities and lost profits. Separately, Bank of Baroda said a US$600 million settlement paid July 1, 2026, resolved claims with NMC entities and their joint administrators without an admission of liability or wrongdoing. The court made no finding against the bank.
A further hearing will address interest, costs, remaining submissions and the terms of the orders. The court set no date for it.
