NMC has succeeded in substantial fraud claims against its founder, Dr B.R. Shetty, and former chief executive, Prasanth Manghat, following a 15-week trial in the Abu Dhabi Global Market (ADGM) Court. Bankim Thanki KC, Henry King KC, Robin Lööf, Alexandra Whelan and Damien Bruneau of Fountain Court, together with Jerome Squires of 7KBW, Ali Al Aidarous of Al Aidarous Advocates & Legal Consultants, and Ali Al Hashimi of Global Advocacy and Legal Counsel represented NMC Healthcare Limited, NMC Holding Limited and their joint administrators. They were instructed by Quinn Emanuel Urquhart & Sullivan UK LLP, led by partners Nick Marsh and Khaled Khatoun.

In his judgment of 5 November 2026, Sir Andrew Smith found that both defendants had knowingly participated in fraudulent trading from April 2012 until NMC’s collapse in 2020. He identified US$5.397 billion as the starting point for assessing their contributions to the company’s assets, with the final amounts to be determined following further submissions.

The decision addresses the fraud behind the collapse of what was once the UAE’s largest private healthcare provider, with a London-listed parent in the FTSE 100. Substantial sums were diverted for the benefit of shareholders (including Dr Shetty) and senior management (including Mr Manghat). Borrowing helped finance and conceal those payments, while false financial statements disguised the group’s true financial position.

Both defendants denied dishonest involvement. Dr Shetty maintained that he was the victim of a fraud carried out by Mr Manghat and other senior managers; Mr Manghat disputed his own role and attributed responsibility to Dr Shetty. After examining extensive documentary and witness evidence, the Court rejected their attempts to disclaim responsibility and found both defendants to have acted dishonestly. He concluded that both should bear the full consequences of the insolvency.

The claimants also succeeded in their civil claims under UAE law, establishing an entitlement to recover approximately US$1.59 billion in unlawful payments, subject to adjustments. The Court will make provision to prevent double recovery between those damages and the fraudulent-trading contributions.

Beyond its scale, the judgment illustrates the substantial exposure of those who knowingly participate in a fraudulent business. Participants need not know every detail of the scheme, and responsibility need not be confined to the money they personally receive. The Court also rejected an automatic reduction in liability simply because another participant might be regarded as more culpable. Its detailed treatment of these issues will be of particular interest to insolvency practitioners and those pursuing or defending substantial fraud claims.

The judgment follows the US$600 million settlement of NMC’s claims against Indian state-owned Bank of Baroda during closing submissions in July 2026. The Court also upheld Abu Dhabi Commercial Bank’s separate claims against Mr Manghat, which were tried concurrently.

The judgment can be found here.