The Bank of Baroda has reached a substantial settlement of US$600 million (approximately ₹5,700 crore) to conclude complex litigation with the NMC Health group and its joint administrators in both Abu Dhabi and London. This resolution closes insolvency proceedings in these jurisdictions without the bank admitting any liability, effectively capping its exposure in the NMC Health debacle.
Disclosed in a regulatory filing on July 2, the settlement was facilitated through the bank’s Abu Dhabi branch and brings an end to two simultaneous legal proceedings—one at the Abu Dhabi Global Market (ADGM) Court of First Instance and another at the High Court of Justice in England & Wales.
According to the filing, “NMC Health PLC, NMC Healthcare Ltd, NMC Holding Ltd, and their respective Joint Administrators have resolved the claims against the Bank of Baroda. This resolution involves, among other things, a payment of US$600 million by the Bank of Baroda, as stipulated in the settlement agreement.” The bank’s submission to the Indian stock exchanges confirmed that the parties reached this settlement without any admission of liability or wrongdoing, and the specific terms of the settlement remain confidential.
The filing elaborated, “All claims and causes of action between the parties have been resolved without admitting liability or wrongdoing. The bank’s liability in these proceedings is limited to the agreed sum.”
NMC Health, once a prominent company on the London Stock Exchange, faced a dramatic downfall after Muddy Waters, a short-selling firm, published a report in December 2019. This report alleged inflated asset values and undisclosed related-party transactions. Further investigations by the administrators revealed a total debt of US$6.6 billion, significantly higher than the US$2.1 billion reported in their audited financial statements.
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Legal cases were initiated in 2022 in both the ADGM court and the High Court in England & Wales. The ADGM trial, which included NMC founder Dr. BR Shetty and former CEO Prasanth Manghat as co-defendants alongside the Bank of Baroda, commenced on March 23, 2026. The administrators accused the bank of facilitating fraudulent financing arrangements, processing credit based on fake invoices, and helping management obscure NMC’s actual financial situation. The English proceedings were paused pending the ADGM’s decision.
The Bank of Baroda described the settlement as a strategic move “to conclude disputes, thereby avoiding prolonged litigation, uncertainty, and associated costs.” As a result of the agreement, the ADGM proceedings have been discontinued, and the English proceedings are in the process of being discontinued.
