Rags-to-riches stories often inspire, but few tales are as shocking and dramatic as that of Bavaguthu Raghuram Shetty, known as BR Shetty. This Indian businessman once owned floors in the Burj Khalifa and a private jet, only to see his billion-dollar empire crumble to the point where he had to sell his Rs 12,400 crore company for a mere Rs 74.
The Rise of BR Shetty
BR Shetty was born on August 1, 1942, into a Tulu-speaking Bunt family in Udupi, Karnataka. Educated in a Kannada medium school, Shetty completed his pharmaceutical studies at Manipal. He served as Vice-Chairman of the Municipal Council in Udupi and married Chandrakumari Shetty, with whom he has four children.
In 1973, with just Rs 665, Shetty moved to Abu Dhabi seeking better opportunities. He worked as a pharma salesman before founding a small clinic, New Medical Centre (NMC), in 1975. Initially, his wife was the only doctor at the center. NMC eventually became one of the largest private healthcare providers in the UAE, making Shetty a pioneer in the sector.
By 2015, Shetty was featured on Forbes’ list of India’s 100 Richest People, and by 2019, he was ranked the 42nd richest person in India with a net worth of Rs 18,000 crore. His luxurious lifestyle included floors in the Burj Khalifa, a fleet of luxury cars, and a private jet.
The Fall from Grace
In 2019, UK-based investment research firm Muddy Waters accused Shetty of inflating cash flow figures to minimize perceived debt. This triggered a massive decline in NMC Health’s stock value. The subsequent financial fallout forced Shetty to sell his Rs 12,478 crore company for just Rs 74 to an Israeli-UAE consortium.
In April 2020, Abu Dhabi Commercial Bank filed a criminal complaint against NMC Health. Soon after, the Central Bank of UAE ordered the freezing of Shetty’s accounts and blacklisted his firms. On April 8, 2020, NMC Health went into administration in the UK due to insolvency, marking a dramatic end to Shetty’s business empire.
Conclusion
BR Shetty’s story is a stark reminder of how fortunes can change overnight. From owning floors in the Burj Khalifa to losing his empire, his journey is filled with both inspiration and caution. Despite his dramatic fall, Shetty’s early success remains a testament to the possibilities of rising from humble beginnings to achieve greatness.
By sharing these captivating and dramatic events, we hope to provide not just an interesting read, but also valuable lessons on the volatility of success and the importance of integrity in business.
