Once owned Rs 880000000000 empire in Dubai, went bankrupt after one tweet, sold firm for Rs 74, now court slaps huge fine due to…, he is..
It’s often said that when fortune smiles on you, dust can be transformed into gold. However, once the wheel of time turns, even the wealthiest among you can find all of their fortune slipping away like sand through your fingers. Crores of good fortune, a billion-dollar business empire, sprawling mansions, and an entire fleet of luxury cars… he had it all. And then the wheel of fate turned, and it all came crashing down.
Who is the billionaire forced to sell his Dubai empire for just Rs 74?
Indian businessman BR Shetty, based in the UAE, is again in the news. The Dubai International Financial Centre (DIFC) Court has dealt a significant blow to him, ordering Shetty to repay 168.7 million dirhams (about Rs 408 crore) to the State Bank of India (branch of DIFC). In an already bankrupt situation, his troubles have compounded. In a ruling issued on October 8, the court rejected Shetty’s claims and ordered him to pay the bank the outstanding amount.
When BR Shetty landed in Dubai with just Rs 700, he shocked the world when he went on to build a multi-billion-dollar empire. A high school dropout, Shetty came from nowhere to the top by pure hard work and seizing opportunities. Founder of companies such as New Medical Centre (NMC), UAE Exchange, and Finablr, Shetty was able to create a business empire worth billions in a few years. In fact, in 2019, he was even listed on Forbes’ 100 richest Indians list.
When did he initially reach the peak of his wealth and success?
B.R. Shetty was born on August 1, 1942, in Udupi, Karnataka. He began his working life as a medical representative, and no one would have believed that he would sell medicines and one day open multiple pharmaceutical companies. At age 31, BR Shetty landed in Dubai with $8 in his pocket (or about Rs 665), looking for better prospects.
He began selling medicines door-to-door as a salesman, and he cultivated contacts with influential people. A few years later, he opened his own hospital, run by his doctor wife, Dr. Chandrakumari Shetty. In 1975, he opened NMC Healthcare in Dubai, the first private healthcare provider in the United Arab Emirates. In a few years, this company became one of the biggest healthcare firms in Dubai.
In 1980, Shetty entered the financial services industry by establishing UAE Exchange, a company he created to facilitate money transfers for the significant expatriate population in the Gulf. In 2003, Shetty established Neopharma, a pharmaceutical company that established a best-in-class manufacturing unit in Abu Dhabi. In 2014, Shetty further broadened his group’s global footprint by acquiring the international foreign exchange company Travelex, which was assumed by his holding company Finablr.
There was a time when BR Shetty’s net worth rose to $3 billion (approximately Rs 20,000 crore). He built a huge business empire across healthcare, finance, and real estate, making him one of the wealthiest Kannadigas in the world.
Shetty had a rich lifestyle — he owned several Rolls-Royce cars, he owned a private jet, and he bought two full floors in Dubai’s Burj Khalifa for $25 million. He also owned several luxury villas in different parts of Dubai, which represented his incredible journey from humble beginnings to vast riches.
Why did a single tweet cause his business to crumble?
In 2019, BR Shetty’s fortunes suddenly changed and he sold his Rs 14,000 crore company for merely ₹74. It all started when the UK-based short-seller firm Muddy Waters, led by Carson Block, publicly claimed Shetty’s companies were engaged in extensive financial irregularities. They posted a report on social media that accused his company of concealing nearly $1 billion in debt from public knowledge and investors. This set off a series of investigations, lawsuits, and a complete collapse of the business empire that Shetty had built from nothing.
STORY HIGHLIGHTS
- In 2019, BR Shetty’s fortunes suddenly changed and he sold his Rs 14,000 crore company for merely Rs 74.
- Shetty had a rich lifestyle — he owned several Rolls-Royce cars, he owned a private jet, and he bought two full floors in Dubai’s Burj Khalifa.
- B.R. Shetty was born on August 1, 1942, in Udupi, Karnataka.
- He also owned several luxury villas in different parts of Dubai.
After all the revelations, the shares of BR Shetty’s companies plummeted overnight, resulting in the loss of billions in market capitalization. This ultimately led to the total collapse of his entity, his Rs 88,000 crore empire, and he subsequently sold his company for just Rs 74.
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