Bank of Baroda settles NMC Health fraud case for $600 million in Abu Dhabi and London

India's state-owned Bank of Baroda has agreed a $600 million out-of-court settlement to resolve litigation tied to the NMC Health collapse. No liability was admitted by either party.

Bank of Baroda pays $600m to end NMC Health insolvency proceedings

India's state-owned Bank of Baroda has agreed to pay US$600 million (approximately ₹5,700 crore) to settle litigation brought by the NMC Health group and its joint administrators, barandbench.com reports. The settlement resolves parallel insolvency proceedings in both Abu Dhabi and London without any admission of liability.

The bank disclosed the agreement in a regulatory filing with Indian stock exchanges on July 2. Payment is being made through its Abu Dhabi branch and brings to a close two sets of proceedings — one before the Abu Dhabi Global Market (ADGM) Court of First Instance and another before the High Court of Justice, England & Wales.

"NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd, and their respective Joint Administrators, have resolved the claims between them and the Bank of Baroda in consideration for, inter alia, payment by Bank of Baroda of US$600 million, pursuant to a settlement agreement," the filing stated. The terms of the settlement remain confidential, and the filing confirmed that "all claims, causes of action, etc. between them have been resolved without admission of liability or wrongdoing."

NMC Health was once a major company listed on the London Stock Exchange, but it unravelled after short seller Muddy Waters published a report in December 2019 alleging inflated assets and undisclosed related-party transactions. Administrators subsequently found total debt of US$6.6 billion against just US$2.1 billion disclosed in audited financial statements.

The ADGM case was filed in 2022. At trial, which commenced on March 23, 2026, the administrators alleged that Bank of Baroda facilitated fictitious financing arrangements — processing credit based on fabricated invoices to help management conceal the company's true debt position. NMC founder Dr BR Shetty and former CEO Prasanth Manghat were named as co-defendants alongside the bank. The parallel English proceedings had been stayed pending the ADGM outcome.

Bank of Baroda described the settlement as intended "to bring the disputes to conclusion thereby avoiding prolonged litigation, uncertainty and associated cost." Following the agreement, the ADGM proceedings have been discontinued; the English proceedings are in the process of being discontinued as well.

The bank's legal team in Abu Dhabi included Harish Salve KC of Blackstone Chambers and Victoria Windle KC of Twenty Essex, supported by Indian firm Poovayya & Co, led by partner Dharmendra Chatur, and UK firm Baker & McKenzie, led by Hugh Lyons and Henry Garfield. The claimants were represented by Bankim Thanki KC and Henry King KC of Fountain Court Chambers, alongside Quinn Emanuel.

Source: Google News UAE — Courts & Fraud