Mumbai: Shares of Bank of Baroda declined on Wednesday, October 14, after the public sector lender clarified that it had not received a lawsuit reportedly filed by NMC founder B.R. Shetty in the Bombay High Court. The stock fell as much as 3% during the session amid the legal development.

At 9.30 am, Bank of Baroda shares were trading 2.69% lower at Rs 231.20 apiece. During the session, the stock touched an intraday low of Rs 230.45. In comparison, the BSE Sensex was down 0.11% at 72,945.

The development comes amid a long-running dispute between Shetty and the bank involving financial transactions and guarantees linked to the NMC group. The reported lawsuit seeks substantial damages, while Bank of Baroda has said it will defend itself if the case is formally served.

Bank of Baroda responds to B.R. Shetty’s lawsuit

Bank of Baroda said it had taken note of media reports concerning a suit reportedly filed by Shetty in the Bombay High Court on October 13, 2026.

The bank clarified that it had not been formally served with the lawsuit and therefore could not comment on the contents of the pleadings. It also noted that the allegations had not been tested in court.

The lender said it would defend itself firmly if and when it received the case papers. Its response follows reports of legal action by Shetty, the founder of NMC Health and UAE Exchange.

The clarification does not resolve the underlying dispute. The allegations made in the reported lawsuit remain subject to legal proceedings, and the bank has maintained that it will respond through the appropriate legal process.

Bank of Baroda pursues Rs 2,800 crore recovery

The bank said the matters referred to in media reports are also connected with proceedings before the Abu Dhabi Global Market (ADGM) Court.

According to Bank of Baroda, the ADGM Court has reserved its judgment against Shetty and Prashant Manghat in proceedings involving allegations of fraud, wrongful trading and fraudulent trading. The bank also said proceedings against it before the ADGM Court had been discontinued.

The lender added that the matters remain sub judice and declined to comment on the allegations against Shetty.

Separately, Bank of Baroda is pursuing recovery of around Rs 2,800 crore from Shetty. It said enforcement proceedings against him are continuing in India and the United Arab Emirates.

These recovery efforts form another part of the wider dispute, which has involved legal proceedings in multiple jurisdictions.

Previous legal proceedings involving B.R. Shetty

The dispute between Shetty and Bank of Baroda has a history stretching across several years.

In 2021, the Karnataka High Court restrained Shetty from dealing with or alienating his assets. Shetty has also told the National Company Law Tribunal that he is insolvent and unable to meet his dues to the bank.

In a separate legal development, Shetty previously filed a lawsuit against Bank of Baroda in the Supreme Court of the State of New York. That case was dismissed in July 2024.

The latest reported lawsuit adds another chapter to the dispute, with Shetty seeking damages over alleged financial irregularities and reputational losses connected to the collapse of his business empire.

Why has B.R. Shetty sued Bank of Baroda?

According to reports about the latest case, Shetty has sought damages of Rs 1.44 lakh crore from Bank of Baroda.

He alleges that the bank relied on guarantees bearing forged signatures and that funds were diverted through disputed transactions. Shetty has also claimed that he had stepped away from the group before several of the loans at the centre of the dispute were granted.

The reported lawsuit also questions the bank’s settlement with the administrators of NMC Health.

These claims are allegations and have not been established by a court. Bank of Baroda has said it has not received the suit and cannot comment on its pleadings until it is formally served.

The legal dispute involves complex questions concerning transactions, guarantees, financial responsibility and the collapse of the NMC business group. The outcome of the proceedings could determine how the competing claims are addressed, but no conclusion on the allegations can be drawn from the filing alone.

Bank of Baroda shares under pressure

The decline in Bank of Baroda shares came as investors reacted to the reports of the lawsuit and the bank’s clarification. The stock’s fall of as much as 3% contrasted with the relatively modest decline in the benchmark Sensex during the early trading session.

The bank’s statement made clear that it intended to defend its interests if it received the case papers. At the same time, its separate recovery efforts against Shetty continue, with proceedings under way in India and the UAE.

The legal developments remain ongoing, and the allegations raised in the reported suit have yet to be established in court. Investors will continue to watch further disclosures from the bank and developments in the relevant proceedings.