Rags-to-riches stories of people who achieve great heights by rising from humble backgrounds are often inspiring. One such tale is that of Bavaguthu Raghuram Shetty, popularly known as BR Shetty, an Indian businessman who once led billion-dollar companies. Burj Khalifa However, fate took an unexpected turn when he had to sell his Rs 12,400 crore company for just Rs 74. Yes, you read that right!
Well, let’s delve into the life of BR Shetty and learn about his fall from grace.
Shetty was born on August 1, 1942 into a Tulu-speaking Bunt family, in Karnataka’s Udupi. He studied in a Kannada medium school and completed his pharmaceutical education from Manipal. He also served as the Vice-Chairman of the Municipal Council in Udupi. He married Chandrakumari Shetty and has four children.
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In 1973, he moved to Abu Dhabi from Karnataka for better opportunities with just about Rs 665. He also worked as a pharma salesman for some time. In 1975, the 81-year-old founded a small pharmaceutical clinic, New Medical Centre (NMC). Initially, his wife was the only doctor at the centre. Over the years, NMC went on to become one of the largest private healthcare providers in the UAE. With this, Shetty became a pioneer in the UAE’s private healthcare sector.
He was included on the Forbes list of India’s 100 Richest People in 2015 and was listed as the 42nd richest person in 2019. He had a net worth of Rs 18000 crore and used to own floors in the iconic Burj Khalifa, had a fleet of luxury cars and a private jet.
In 2019, a UK-based investment research firm, Muddy Waters alleged that Shetty inflated cash flow to show less debt. Subsequently, the allegations triggered a fall in the company’s shares and as a result, BR Shetty had to sell his Rs 12,478 crore company for just Rs 74 at the time to an Israeli-UAE consortium. This is how his fortunes changed overnight.
In April 2020, Abu Dhabi Commercial Bank filed a criminal complaint against NMC Health. Days later, the Central Bank of UAE ordered the freezing of his accounts and the blacklisting of his firms. On 8 April 2020, NMC went into Administration in the UK due to the company’s insolvency.
