The long-running legal fallout from the NMC Healthcare has entered a critical new phase after the ruling of the Abu Dhabi Global Market (ADGM) Court. However, the healthcare company was founded by BR Shetty.
Hence, the decision might allow the Bank of Baroda to be pressured to disclose the suspicious transaction reports (STRs) and related internal anti-money laundering (AML) records in civil proceedings. However, it is something that was previously barred under the UAE Law.
What did the ADGM court decide?
Justice Sir Andrew Smith allowed applications by the joint administrators of NMC Healthcare Ltd and NMC Holding Ltd to set aside an earlier order that prohibited disclosure of STR-related material in a recent judgment. However, the ruling follows the introduction of the Federal Decree-Law No. 10 of 2025 on Anti-Money Laundering, which came into force on October 14, replacing the 2018 AML law.
Earlier, the court had ruled that the Bank of Baroda could disclose the STRs in June 2025 due to strict confidentiality rules and the risk of tipping off, which could attract criminal liability. However, the administrator of NCM returned to the court. They argued that the new AML law fundamentally changed the legal position.
Justice Smith agreed, holding that the new law introduces a broader exception, which allows disclosures of confidential information in other situations permitted by law.
Why does this matter in the BR Shetty case?
The ruling has formed part of a civil proceeding brought by the administrators of NMC against BR Shetty, former NMC CEO Prasanth Manghat, and Bank of Baroda, over alleged misconduct linked to NMC’s dramatic collapse.
NMC entered administration in 2020 after revealing more than $4 billion in debt. Hence, it triggered one of the largest corporate failures in the United Arab Emirates (UAE). Since then, administrators and creditors have been attempting to trace how funds moved through the group and whether lenders identified—or missed—red flags. Thus, the ADGM ruling has provided the administrators an access to the following elements:
- Any STRs linked to NMC accounts
- Internal AML and compliance reports
- Decisions where potential issues were flagged, but no STR was filed
The judge has revealed that even documents showing no STRs were filed could still help the court to assess how Bank of Baroda handled NMC-related accounts.
Court’s reasoning and safeguards
Justice Smith has also rejected the argument of Bank of Baroda that the phrase “permitted by law” in the 2025 AML statute applies only to federal legislation and not court orders. Moreover, he ruled that the Arabic term qanoun can include court orders issued by the UAE courts, depending on context.
The court has highlighted that STRs should not be disclosed routinely. Hence, judges must balance the following things:
- The public interest in protecting the confidentiality of reports submitted to the Financial Intelligence Unit (FIU)
- The right to a fair trial in serious civil disputes
Before any disclosure, the FIU and other authorities might be given opportunities to release documents that could affect the ongoing or future investigation.
Legal experts react
The legal experts say that the ruling strikes a careful balance. Khalifa Bin Huwaidan Al Ketbi, senior lawyer at Al Ketbi Legal Advocates, said the updated AML law projects confidentiality while recognising that courts may permit disclosure in tightly controlled circumstances to ensure justice.
Similarly, Mahrah Belobaida Al Suwedi of Al Riyami Advocates noted that the judgment provides clearer guidance. Hence, it allows limited judicial discretion without weakening the overall AML framework.
Wider implications for BR Shetty and creditors
The ADGM does not determine guilt, nor does it automatically release documents. Instead, each disclosure request will need separate court approval. In addition, Bank of Baroda can still challenge relevance and scope.
The ruling has another level of legal pressure on BR Shetty, as he is already battling claims across many jurisdictions. A DIFC court ordered him in October 2025 to pay $46 million to the State Bank of India after finding he gave a false guarantee regarding a personal guarantee.
Read more:
Dubai Weather Warning 2025 Issued as Authorities Alert Residents Over Rain and Unstable Conditions
[…] BR Shetty Case: ADGM Court Allows Possible Disclosure of Bank of Baroda AML Records 2025 in NMC Heal… […]
[…] BR Shetty Case: ADGM Court Allows Possible Disclosure of Bank of Baroda AML Records 2025 in NMC Heal… […]