Bavaguthu Raghuram Shetty, once celebrated as a self-made billionaire and recipient of the Padma Shri, experienced a dramatic fall from grace, losing his $10 billion healthcare empire. His journey, from humble beginnings to building a sprawling business conglomerate in the UAE, then plummeting into financial ruin, serves as a cautionary tale of ambition, mismanagement, and the importance of corporate governance.
Shetty's entrepreneurial journey began in 1973 when he moved to the UAE with just $8 in his pocket. Trained as a pharmacist, he identified a gap in the healthcare sector and, in 1975, founded the New Medical Centre (NMC). What started as a small clinic, with his wife Dr. Chandrakumari Shetty as the first doctor, evolved into NMC Health, the largest private healthcare provider in the UAE, serving over four million patients annually. His business acumen extended beyond healthcare. In 1980, he launched UAE Exchange, capitalizing on the growing expatriate community's need for efficient money transfer services. Later, in 2003, he established Neopharma, a pharmaceutical manufacturing unit in Abu Dhabi. His acquisition of Travelex in 2014, a major foreign exchange company, further solidified his group's global presence under the holding firm, Finablr.
By 2019, Shetty's net worth was estimated at $3.5 billion, earning him a spot on Forbes' list of India's 100 Richest People. He was lauded for his contributions to the UAE's healthcare sector and his philanthropic endeavors, receiving the Abu Dhabi Award in 2005 and the Padma Shri in 2009. His success was also reflected in his extravagant lifestyle, including owning multiple flats in Dubai's iconic Burj Khalifa.
However, the tide began to turn in December 2019 when Muddy Waters Research, a U.S.-based short-seller, released a report questioning NMC Health's financial reporting. The report alleged that NMC had manipulated its balance sheet to understate debt and inflate cash flow figures. These allegations triggered a massive sell-off of NMC's shares, plummeting the company's stock value.
As investigations into NMC's finances deepened, a series of shocking revelations came to light. In March 2020, NMC's board revealed over $4 billion in hidden debt. The company had been operating "dual sets of accounting records" to conceal its true financial position. This led to the suspension of NMC's shares on the London Stock Exchange and its removal from the FTSE 100 Index. Facing mounting pressure, Shetty resigned from his positions at NMC Health in February 2020. He claimed to be unaware of the hidden debts, blaming rogue executives for the financial mismanagement.
The crisis quickly spread to Shetty's other businesses. UAE Exchange suspended operations, and Finablr, the holding company for his financial services businesses, faced insolvency. Finablr revealed approximately $100 million of undisclosed financing. Trading of Finablr shares was suspended on the London Stock Exchange. In April 2020, NMC Health was placed into administration by a UK High Court judge, marking a historic corporate collapse in the Middle East.
The fallout from the collapse of Shetty's empire was widespread. Over 80 banks and creditors suffered severe losses. Abu Dhabi Commercial Bank (ADCB) faced exposure of as much as $1 billion. Thousands of employees and patients faced uncertain futures as healthcare services were disrupted. Shetty's assets were frozen in India and the UAE, and multiple lawsuits and investigations were launched against him and his group.
In December 2020, Shetty sold his majority stake in Finablr to Prism Group AG and Royal Strategic Partners. His once thriving company, valued at Rs 12,478 crore, was sold for a mere Rs 74 to an Israel-UAE consortium. NMC Health continues to operate under new ownership, separated from Shetty's control.
Recently, in October 2025, a Dubai court ordered Shetty to pay Rs 381 crore to the State Bank of India (SBI) after finding that he repeatedly lied under oath about signing a personal guarantee for a loan. Justice Andrew Moran described Shetty's testimony as "an incredible parade of lies".
B.R. Shetty maintains that he is a victim of fraud and has filed complaints against former executives, accusing them of inflating balance sheets and misappropriating funds. Regardless, his story serves as a reminder of the importance of transparency, accountability, and ethical conduct in the world of business.
