Indian entrepreneur BR Shetty has filed a complaint with central investigative agencies in India seeking a probe into two former top executives of his companies and two Indian banks related to a multi-billion dollar financial scandal engulfing his group.
Several companies linked to Shetty, including top United Arab Emirates hospital operator NMC Health PLC and payments firm Finablr PLC, have come under severe financial strain this year after short-seller Muddy Waters questioned NMC’s financials.
At issue, Muddy Waters said, were questions about NMC’s asset purchase prices and capital expenditures, which it said were both inflated.
NMC and Finablr subsequently announced far higher debts than they had previously reported.
Shetty’s 55-page complaint, a copy of which was seen by Reuters, accuses the former chief executives of NMC and Finablr, along with their associates and bankers, of inflating the companies’ balance sheets, arranging “illegal” credit facilities and misappropriating funds since 2012.