Bavaguthu Raghuram Shetty or B.R. Shetty is an Indian-born businessman who was once one of the most influential and richest businessmen in the Middle East. His story, how he launched a multi-billion-dollar healthcare and financial company in the United Arab Emirates, is quite encouraging and also warning. Although his ascendancy was a sign of ambition, vision and perseverance, his tragic downfall revealed that there was poor governance and financial mismanagement that resulted in the failure of one of the biggest corporate empires in the UAE.

Childhood and Family History.

B.R. Shetty had been born on 1 August 1942 at Bavaguthu House, Udupi, Karnataka, India. He was a member of a Tulu speaking Bunt family and the community was traditionally known to be landowners, disciplined and leaders. His parents were Shambhu Shetty and Koosamma Shetty who brought him up in a cultural based but a simple home.

Shetty speaks Tulu as his first language and received his initial education in a school where the medium of instruction was Kannada, which shows how simple his upbringing was. He was a responsible and a leader at a tender age. He joined the pharmaceutical studies at Manipal, a famous school in Karnataka after finishing his school.

Other than academics, Shetty was also engaged in early life public service. He subsequently worked as the Vice-Chairman of the Municipal Council in Udupi and this exposed to him administration, governance and leadership skills which came in handy in his corporate career.

Marriage and Personal Life

B.R. Shetty also married Chandrakumari Shetty, a medical practitioner who helped him in his business in a significant way. The couple has four children. Intriguingly, the first years of NMC had a single doctor as his wife, which represents family direct participation, and sacrifices in developing the business.

The decision to move to the UAE: a life changing move.

Shetty came to the United Arab Emirates in 1973, when the nation was still in its infantile economic development phase following the oil discovery. He went like many Indian expatriates of the time to find improved opportunities and finances.

His first job was to be the first medical representative of the UAE where he had a good exposure of the medical system, pharmaceutical distribution and the clinical needs of patients. This is a time when he noticed a huge gap, that is, the unavailability of affordable and personalised healthcare to the rapidly increasing expatriate population.

The observation was the forerunner of developing one of the biggest healthcare networks in the Middle East.

Founding of NMC: From a Small Clinic to a Healthcare Giant

B.R. Shetty established New Medical Centre (NMC) in Abu Dhabi in the year 1975. The clinic started with small resources and currently there is only one practicing doctor who is Dr. Chandrakumari Shetty. The main challenge that Shetty had was to offer quality healthcare at affordable prices, which could be affordable by the average men.

During the following forty years, NMC has grown aggressively:

• Hospitals were transformed to clinics.
  • Local operations were internationalized.
  • Specialized medical care was also implemented.

At its peak, NMC Health became:

            The biggest privately owned healthcare facility in UAE.

• Attends to more than 4 million patients a year.
  • owns 45+ healthcare facilities.

            The company is present in 8 countries, such as UAE, Saudi Arabia, Oman, Spain, Italy, Denmark, Colombia, and Brazil.

NMC is also the first gulf Cooperation Council (GCC) and the first company with its base in Abu Dhabi to list its shares at London Stock Exchange (LSE).

IPO Success and FTSE 100 Listing.

NMC Health has also issued an initial public offering (IPO) in the London Stock Exchange in 2012, raising in the tune of 330 million dollars. The money was spent on the development of modern medical facilities such as a specialty hospital in Khalifa City, Abu Dhabi.

The valuation of the company increased quickly and NMC Health ultimately made it to the FTSE 100 Index and this was the milestone that acquired tremendous global fame. In 2019, the firm was estimated to be worth over $10 billion, and the net worth of Shetty was estimated to be 3.5-4 billion.

Beyond Healthcare: Expansion UAE Exchange and Finablr.

UAE Exchange

Shetty acquired UAE Exchange in 1980 which was initially established by the Indian, Daniel Varghese with assistance of Emirati leadership including the former UAE Minister of Justice Abdulla Humaid Al Mazroei.

UAE Exchange met a significant requirement, which was secure and quick money remittances by the expatriates. Under Shetty’s leadership:

            The company grew into 31 countries.

            Operated 800+ offices worldwide

            Handled in excess of 50 billion dollars a year by 2014.

Finablr and Travelex

In order to bring together his financial services companies, Shetty established Finablr, which proceeded to purchase Travelex in 2014. Travelex had:

• 1,500 stores
  • 1,300 ATMs
  • Presence in 27 countries

This purchase boosted the international financial presence of Shetty and made him even more a business visionary.

Pharmaceutical Investment: Neopharma.

Shetty established NMC Neopharma, a pharmaceutical company in Abu Dhabi, in 2003. The plant was launched by the then President of India A.P.J. Abdul Kalam.

Neopharma focused on:

• Modular manufacturing
  • Research and development
  • Quality low-priced drugs.

The company collaborated with international pharmaceutical powerhouses like Pfizer, Merck, AstraZeneca and Boots UK, which gave a boost to the pharmaceutical industry in the UAE.

Rewards, Recognition and Influence of the masses.

B.R. Shetty was awarded many prestigious awards:

• Abu Dhabi Award (2005) – the most important civilian award in the Emirate.
  • Pravasi Bharatiya Samman (2007)
  • Government of India (2009) Padma Shri.

He served in a number of powerful roles which included:

• Chairman, Indian Business/Professional Group.
  • Member, UAE Medical Council
  • Member and contributing, Indian Pharmaceutical Association in the Emirates.

Shetty is a signatory to The Giving Pledge, a pledge that he will donate a major part of his fortune to charity, especially in the health and education sectors.

The Failure of the Billion-Dollar empire of the Billionaire B.R. Shetty.

The collapse of B.R. Shetty was spontaneous, dramatic, and had never been known in the history of corporate life in the Middle East. The crisis started in December 2019 when the U.S.-based short-selling company Muddy Waters Research published a report claiming that NMC Health had a significant number of financial anomalies. The report presented the firm with charges of pumping cash balances, concealing huge undisclosed debt, and taking on poor corporate governance practices. What at first seemed like an attack on the market turned out to have more underlying structural problems in the business empire of Shetty. Suddenly, investor confidence disappeared and NMC Health has plummeted within a few hours in London Stock Exchange. With an increasing scrutiny, the company acknowledged a sum of over 4 billion dollars in undisclosed liabilities, which surprised the world investors, lenders, and regulators. Inquiry revealed falsified paperwork, unapproved loans and intricate financing schemes that circumvented board control. In February 2020, Shetty resigned in the board of NMC Health arguing that he was not aware of the financial misconduct. But the regulators and the courts discovered indications of long time bad management. On 8 April 2020, NMC Health was administrationally ordered by a UK court, and the downfall of a formerly FTSE-100 company worth above $10 billion was announced. This crisis soon extended to other projects that Shetty was involved with such as UAE Exchange and Finablr which caused liquidity crises within the group. The Central Bank of the UAE put the personal and corporate bank accounts of Shetty on hold, blacklisted his companies and several banks such as Abu Dhabi commercial bank and state bank of India pursued him with criminal and civil charges. His personal fortune was wiped out as his pledged shares were sold to pay back his debts and his net worth decreased to practically nothing. Previously the glorified entrepreneur and Padma Shri winner, Shetty turned into the example of how uncontrolled growth, unjust financial operations, and mismanaged government can ruin even the most enormous empires. His eventual ruin was the sale of his once $12,478-crore empire at only $74 as a clear reminder that power, wealth and reputation can disappear very fast without transparency and accountability.

Resignation, Administration, and Legal Trouble

Shetty was expelled off the board of NMC Health in February 2020. NMC Health was forced into administration in the UK on 8 April 2020 because of insolvency.

Republicans responded quickly:

• Shetty resigned in various positions.
  • Central Bank of UAE seized his accounts.
  • His firms were put on blacklist.
  • Commercial Bank of Abu Dhabi had criminal complaints.
  • The Indian agencies started investigations.

The pledged shares of Shetty were sold off to settle debt and his net worth drained. In 2020, Forbes dropped him off its billionaires list.

Selling a $12,478 Crore Empire for Rupees 74

The sale of his empire, which had been worth $12,478 crore, was one of the most outrageous events, in itself representing the destruction of the entire foundation of trust, valuation, and control.

New Developments and the Present State.

The DIFC Court of Dubai awarded the State Bank of India $46 million against Shetty in October 2025, condemning his denials and referring to vast amounts of evidence.

Today:

• NMC Health has new ownership.
  • Shetty is still involved in legal tussles.
  • His property is still frozen in different jurisdictions.

Legacy: A Tale of Success and Danger.

The life of B.R. Shetty serves as a strong reminder of the fact that:

• Empires can be established worldwide with the help of vision and ambition.
  • Poor transparency can end them in no time.

His story is read not only as a success story but as an account of the failure of corporate governance, accountability and ethical leadership.

Conclusion

Starting small business in Udupi to the peaks of global business and then to one of the most spectacular corporate meltdowns in the history of the modern business, the path that B.R. Shetty took is one that can not be forgotten. It depicts the hope and the threat of being an entrepreneur by showing that success is not only about growth, but also about being straight.