- B R Shetty seeks Bank of Baroda to earmark Rs 1.44 lakh crore plus interest as contingent liability
- Shetty filed a $15 billion lawsuit against Bank of Baroda on October 14, seeking damages and safeguards
- Applications request forensic imaging and preservation of Bank of Baroda’s digital records and communications
B R Shetty, founder of NMC Healthcare, has asked the Bombay High Court to direct Bank of Baroda (BoB) to earmark Rs 1.44 lakh crore, plus interest, in its books and disclose the amount as a contingent liability in its financial statements as part of his $15 billion damages lawsuit against the lender. Shetty has filed two applications in the case, seeking financial safeguards and the preservation and disclosure of records that he says are relevant to his claims against the bank. The applications to the Bombay High Court were reviewed by NDTV Profit.
Shetty filed the $15 billion damages suit against Bank of Baroda on October 14. His latest applications seek to protect any potential recovery before a final judgment and obtain records relating to the bank's dealings connected with the dispute.
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The allegations made in the applications remain unproven and have not been established by a court.
In one application, Shetty has asked the court to direct Bank of Baroda to earmark Rs 1.44 lakh crore, along with interest, and disclose the entire claim as a contingent liability in its financial statements. The request is aimed at securing the potential recovery he is seeking in the lawsuit before the court delivers its judgment. The application seeks financial provisioning or security from the bank in connection with the claim.
READ | Bank Of Baroda Says It Has Not Been Served In BR Shetty Lawsuit, Vows To Defend Case
A contingent liability is a potential financial obligation whose final outcome depends on the resolution of an uncertain event, such as a legal dispute. The request, if granted, could have implications for how the bank reports the claim in its financial disclosures. However, the filing of the application does not mean that the bank has accepted the claim or that the court has directed it to make any provision.
In a separate application, Shetty has sought forensic imaging of Bank of Baroda's servers and the preservation of digital records relevant to the dispute. He has also asked for the production of the $600 million settlement agreement reached in connection with NMC Healthcare at Abu Dhabi Global Market (ADGM), along with the related board minutes.
The application further seeks disclosure of the bank's internal records, SWIFT messages and communications with regulators. Shetty's requests are intended to secure records that may be relevant to his allegations against the lender. The applications allege that Bank of Baroda ignored anti-money laundering (AML) alerts and concealed lending exposures. These claims have not been established in court.
Forensic imaging involves creating a detailed digital copy of electronic storage systems so that records can be preserved and examined without altering the original data.
What Has Bank Of Baroda Said?
Bank of Baroda had earlier said it had not been served with the lawsuit and would firmly defend the case. The bank said the pleadings were untested in court and that it could not comment on the allegations before receiving formal service. The lender has also said that the $600 million settlement involving NMC Healthcare did not constitute an admission of liability or wrongdoing.
READ | B.R. Shetty Files Suit Against Bank Of Baroda | Check Details Inside
Separately, Bank of Baroda said it was pursuing recovery proceedings against Shetty for approximately Rs 2,800 crore.
The bank's position contrasts with the allegations in Shetty's lawsuit, which seeks damages of $15 billion. The claims and counterclaims will be subject to the legal process, and the court's consideration of the applications will determine whether the requested financial safeguards and disclosures are ordered.
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