Bank of Baroda faces a $15 billion suit filed by BR Shetty against the bank and 25 other defendants. Shetty alleges they enabled fraud involving his businesses and pursued repayment under guarantees he says he never signed, according to Gulf News. The bank says it has not been served and will defend itself firmly if the case proceeds.
Shetty filed in the Bombay High Court on Tuesday, according to Reuters, which reviewed the filing. The suit adds a new legal front in NMC Healthcare’s collapse, while the bank continues recovery proceedings against him for approximately Rs28 billion in outstanding dues.
BR Shetty challenges disputed guarantees
The filing alleges that personal guarantees and other documents carried forged signatures. Shetty says the bank relied on them without properly verifying their authenticity. A personal guarantee makes an individual responsible for a borrower’s debt if the borrower fails to repay it.
Shetty also alleges that account instructions and transfers were unauthorized. He asked the court to require disclosure of transaction instructions, account-opening documents, customer-verification records and the identities of officials who handled or verified transfers.
The suit names 26 defendants, including Bank of Baroda, 10 of its officials, former NMC executives Prasanth Manghat and Promoth Manghat, their associates, and two Indian companies, according to the filing.
Filing alleges overlooked transaction alerts
Shetty’s filing says Bank of Baroda served as the NMC group’s principal banker until around 2019. He alleges that the lender facilitated fund diversion through group companies and entities presented as independent suppliers.
The suit reportedly accuses bank officials of enabling “round-tripping” transactions. It alleges the bank’s systems generated more than 100 money-laundering alerts that were later closed. Shetty also accuses the lender of extending credit without adequate security and failing to disclose concerns about borrowings and transactions to auditors.
An alert calls for further scrutiny; it does not prove money laundering. The disputed alerts and transactions remain allegations in Shetty’s case.
Bank disputes claims and cites unpaid dues
Bank of Baroda said it had not been served and could not comment on pleadings untested in court. It said it would defend the suit firmly and protect its interests.
The bank said it had obtained several decrees against Shetty while pursuing recovery and enforcement proceedings in India and the UAE. It said the Karnataka High Court restrained him from dealing with or disposing of his assets in 2021. The bank added that Shetty later told National Company Law Tribunal proceedings that he was insolvent and unable to meet its dues.
The lender cited a New York lawsuit containing similar allegations, which it said was dismissed in July 2024. Those earlier proceedings do not decide the Bombay suit’s claims.
Separate settlement leaves claims unresolved
The new case follows Bank of Baroda’s agreement to pay $600 million to settle claims brought by NMC group companies and their joint administrators. The bank disclosed that the agreement was dated July 1, 2026. Shetty’s filing says he was not a party and argues it does not extinguish his separate claims. The filing also says the settlement involved no admission of liability.
Shetty seeks $5 billion in direct damages, $5 billion in consequential damages and $5 billion for reputational harm. He also seeks interest at 18 per cent a year from the institution of the suit until payment. Those are demands, not damages awarded by a court.
He has requested preservation of banking records and electronic evidence, disclosure of assets allegedly funded through disputed transactions, and interim restrictions on certain defendants dealing with assets in India. The report does not say the court granted those requests. The bank said the suit creates no immediate liability unless an order is passed or it must set aside money.
Grit Daily has also covered business disputes involving fraud allegations, including the CaaStle CEO lawsuit and Oakes Farms allegations. A separate Bank of Baroda account case involved a different company account dispute.
