Karnataka High Court permits NRI businessman B R Shetty to visit family in UAE

Karnataka High Court permits NRI businessman B R Shetty to visit family in UAE

Mangalore Today News Network

Bengaluru, Feb 13, 2024: The Karnataka High Court has passed a conditional order enabling NRI businessman Bavaguthu Raghurama Shetty (B R Shetty) to travel to the UAE to meet his family and friends.

 

Justice Krishna S Dixit passed this order while directing for keeping in suspended animation the various look out circulars (LOCs) issued against Shetty.

The court directed Shetty not to alienate, encumber or otherwise meddle with any of his properties anywhere in the globe or any interest therein whether disclosed, undisclosed or otherwise. He has also been directed to file an undertaking in the form of an affidavit along with two sureties, each worth Rs 1 crore, that he shall whenever required in any legal proceedings, come back to India, and shall not leave the country without the prior permission of court concerned.

“In the event, any proceedings that may be instituted under the provisions of the Fugitive Economic Offenders Act of 2018, the Extradition Act, 1962, or such other law, or any extradition/rendition proceedings are taken up abroad, the Petitioner shall not resist the same on any ground whatsoever,” Justice Dixit said.

Shetty had submitted that in the earlier round of litigation, although he was permitted to go before the banks to seek recall of the LOCs, a short interaction did not raise any confidence in him that the request would be considered objectively.

It is stated that Shetty owed Rs 2,324 crore to Bank of Baroda as a personal guarantor and the bank had obtained a decree from courts in Abu Dhabi against him in respect of around Rs 831 crore worth of assets. It was also stated that the bank had initiated recovery proceedings against him and the same are pending.

The bank contended that the petitioner is a chronic defaulter of huge loans and his presence is required in India to prevent loan recovery proceedings being rendered futile. It was argued that the LOCs were issued in the economic interests of India since the public money owed by the petitioner and his spouse is in astronomical figures.

Justice Dixit observed that with Mareva Injunction Order (freezing injunction) being passed, it is not understandable how the petitioner going abroad to see his family and structure his legal battles would defeat the loan recovery process.

Courtesy: Deccan Herald