We are all aware of rags to riches stories, but tales of riches of rags are also not uncommon. In the corporate world, the story of Bavaguthu Raghuram Shetty aka BR Shetty is akin to a Shakespearean tragedy. BR Shetty personified the rags-to-riches story. Starting off with just Rs 665, he travelled from India to the Gulf and went on to create an incredible fortune estimated at Rs 18,000 crore. His business, NMC Health, flourished and became the biggest privately owned health operator in the United Arab Emirates (UAE), signifying his enormous achievement. BR Shetty had no qualms showing off the wealth he had amassed and lived life ultra king size. He flaunted his wealth with an extravagant lifestyle that included a private plane, an amazing collection of high-end cars like Rolls Royce and Maybach, and possession of two entire floors in the famous Burj Khalifa, which was valued at Rs 207 crore. In addition to his stunning real estate holdings, which included properties at the Dubai World Trade Centre and Palm Jumeirah, he also held 50% of the rights to a private plane that he had purchased for Rs 34 crore in 2014.
The pivotal moment in this story of riches to rags occurred in 2019 when Carson Block, the head of the UK-based investment research firm Muddy Waters, made allegations against BR Shetty. Muddy Waters’ claim in a tweet rocked the business community. They alleged that BR Shetty had exaggerated his company’s cash flows to make it look less indebted. This allegation precipitated a sharp decline in NMC Health’s stock price, placing BR Shetty’s financial empire in jeopardy.
Following the filing of grave accusations against BR Shetty’s business, an inquiry was carried out and all unpaid taxes were retrieved from him by the government. The market cap also decreased as a result of the sharp decline in shares, and ultimately he was forced to sell his entire Rs 12,478 crore business for a mere Rs 74. BR Shetty’s reign came to an end with this historic setback, which served as a sobering warning that things may change drastically in the erratic world of business.
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