Bank of Baroda (BoB) has issued a statement in response to a lawsuit filed by Bavaguthu Raghuram Shetty, the founder of NMC Healthcare, seeking $15 billion in damages. The bank noted that it had become aware of media reports concerning the suit, which was reportedly filed in the Bombay High Court on October 13, 2026. BoB clarified that it has not yet been served with the legal documents and therefore cannot comment on the specifics of the allegations presented in the lawsuit.

The bank further stated that once it is formally served, it intends to defend itself vigorously and will take all necessary measures to safeguard its interests. This response comes amid serious allegations made by Shetty against the bank and several other defendants.

Details of the Allegations in the Lawsuit

In his lawsuit, Shetty alleges that Bank of Baroda, along with 25 other defendants, facilitated the diversion of funds, concealed liabilities, and pursued him based on guarantees that allegedly bore forged signatures. He has claimed damages amounting to $5 billion each for direct and consequential losses from the defendants, as well as an additional $5 billion from BoB for purported reputational damage and loss of goodwill. Furthermore, he has requested interest at a rate of 18 per cent per annum.

The lawsuit specifically names BoB and ten of its officials, asserting that they hold assets acquired through the alleged diversion of funds. It also alleges that the bank disregarded repeated anti-money laundering (AML) alerts, extended credit without sufficient security, and facilitated transactions through supplier accounts purportedly used for round-tripping. Additionally, it claims that certain bank officials accepted gifts and failed to act on warning signs despite internal scrutiny.

One significant allegation involves discrepancies in balance confirmations prepared for the auditor, Ernst & Young (EY). According to the lawsuit, while 15 confirmations were prepared, only 11 were submitted to the auditor. Shetty has also contested BoB’s pursuit of guarantees attributed to him, asserting that the signatures were forged and that the bank continued to rely on them despite purportedly becoming aware of the concealed liabilities.

Previous Legal Settlement Involving BoB

In July 2026, Bank of Baroda reached a settlement of $600 million to resolve litigation related to the collapse of NMC Health. This settlement marked the conclusion of extensive cross-border legal proceedings associated with one of the largest corporate failures in West Asia. Under the terms of the settlement, NMC Health, NMC Healthcare, NMC Holding, and their joint administrators resolved all claims against Bank of Baroda without any admission of liability or wrongdoing on the part of the bank.

The recent lawsuit filed by Shetty appears to build upon the complexities surrounding the previous legal issues faced by the bank. The ongoing developments in this case could have significant implications for both BoB and the other parties involved.

As the situation unfolds, it remains to be seen how Bank of Baroda will navigate these allegations and what further legal actions may arise in response to Shetty’s claims. The bank’s commitment to defending itself suggests a protracted legal battle ahead, which could attract further scrutiny from the financial and legal communities.

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