BR Shetty quits as co-chairman of Finablr

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BR Shetty, finablr, NMC Health

Dubai - The London-listed Finablr uncovered around $1 billion in debt hidden from its board a few months ago.


Issac John

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Published: Mon 17 Aug 2020, 7:59 PM

Last updated: Mon 17 Aug 2020, 10:02 PM

BR Shetty, the founder of payments group Finablr, has stepped down as its co-chairman and director with immediate effect, the London-based firm said on Monday.

The resignation of Shetty, who also founded NMC Health, the healthcare provider stricken by $6.6 billion debt, came three weeks after Finablr brought in law firm Skadden to investigate any historic potential misconduct within the group and any misappropriation of its assets.

The London-listed Finablr, which owns foreign exchange businesses UAE Exchange and Xpress Money Services, uncovered around $1 billion in debt hidden from its board few months ago. With the overall debt of the company at $1.3 billion, Finablr had also warned of potential insolvency as allegations of fraud, forgery and financial irregularities bedeviled its founder's other company NMC Health, forcing it eventually into court administration.

In February, Shetty, who has been living in Karnataka since the outbreak of scandals, resigned from NMC's board of directors after he was excluded from board discussions for allegedly misrepresenting his shareholdings in the company.

In March, amid raging scandals, Shetty and two others -- Shetty's son, Binay, and Abdulrahman Basaddiq -- had to resign from the board of Travelex, which was owned by the embattled Finablr. Promoth Manghat, who stepped down as the chief executive of Finablr, also resigned from the Travelex board.

In a statement to the London Stock Exchange on Monday, Finablr said that it has received a notification from the UK government's HM Revenue and Customs (HMRC) about two of its subsidiary companies, UAE Exchange UK Ltd and Xpress Money Services Ltd, regarding their proposed suspension and suspension, respectively, of their business registrations.

"Suspension of business registration would result in cessation of business by the relevant entities unless and until the suspension is lifted. The company intends to work with HMRC to attempt to restore the registrations," the statement added.

Meanwhile, a commercial court in Bengaluru has temporarily restrained Shetty from selling certain assets following a petition filed by Commercial Bank of Dubai, according to Bloomberg. Another lender of Shetty, India's Bank of Baroda, also got a similar relief from a sessions court in Bengaluru in May.

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