NMC Founders Hooked for $5.397B in ADGM Fraud Ruling
The Abu Dhabi Global Market (ADGM) Court of First Instance has formally pinned liability on NMC Healthcare founder B.R. Shetty and former CEO Prasanth Manghat for running an extensive fraudulent trading scheme spanning eight years from April 2012 to April 2020. Issued on November 5, 2026, the commercial and civil division ruling establishes a $5.397 billion baseline figure to calculate what financial contributions both men must make toward NMC Healthcare’s assets.
The court made it clear that this multi-billion-dollar figure isn’t the final compensation bill just yet. A subsequent hearing will nail down the exact financial obligations and broader fallout from the judgment.
The litigation roots back to deep-seated fraud involving the asset stripping of the group, hidden liabilities, and massive undisclosed loans that masked the company’s true financial health. Financial management proceedings eventually swept up NMC Healthcare, NMC Holding, and 34 other companies tagged within the ADGM framework.
According to the court’s findings, Shetty pocketed hefty cash transfers from the group to buy private assets, kept personal financial collateral off the books, allowed cooked financial statements to circulate, and hid loans from external auditors. Meanwhile, Manghat acted as the operational engine behind the misappropriation, using his position to shield the transactions and keep auditors in the dark about mounting corporate debts.
Alongside the overarching fraud findings, a separate lawsuit brought by Abu Dhabi Commercial Bank landed a major win against Manghat. The court found him directly liable to the bank, opening a pathway to recover more than $1.19 billion to cover unpaid liabilities and lost profits, subject to upcoming adjustments.
| Case Element | Amount / Scope |
|---|---|
| Fraudulent Trading Base Figure | $5.397 billion |
| ADCB Claim Against Manghat | More than $1.19 billion |
| Fraud Timeline | April 2012 to April 2020 |
