NMC Health Fraud Judgment Highlights Corporate Due Diligence and Asset Tracing Risks in the UAE

A landmark judgment by the Abu Dhabi Global Market (ADGM) Courts has highlighted the importance of financial transparency, corporate governance and independent Due Diligence following one of the UAE's most significant corporate collapses.

On 5 November 2026, the ADGM Court of First Instance found NMC Health founder B.R. Shetty and former chief executive Prasanth Manghat liable for fraudulent and wrongful trading in connection with the healthcare group's collapse in 2020.

The court concluded that both individuals had knowingly participated in fraudulent activities involving the misappropriation of company assets, concealed borrowing and misleading financial information.

The judgment identified approximately $5.397 billion as the starting point for assessing financial contributions to the company's assets, with the final amounts to be determined through further proceedings.

The case demonstrates how complex corporate structures, undisclosed liabilities and financial relationships can conceal substantial risks, reinforcing the importance of Corporate Intelligence and independent verification.

What Did the ADGM Court Find?

The proceedings followed the collapse of NMC Health, which entered administration in 2020 after serious concerns emerged about its financial position.

Once among the UAE's largest private healthcare providers, NMC operated an extensive network of hospitals and medical facilities and had previously been listed on the London Stock Exchange.

The group's collapse exposed substantial undisclosed borrowing and prompted extensive investigations into its financial arrangements.

In its November 2026 judgment, the ADGM Court found that Shetty and Manghat had knowingly participated in fraudulent trading between April 2012 and April 2020.

The court examined the concealment of liabilities, misappropriation of company funds, misleading financial records and arrangements used to disguise the group's true financial position.

The proceedings were brought by NMC Healthcare Limited, NMC Holding Limited and their joint administrators.

The judgment represents an important development in the legal proceedings arising from the company's collapse.

However, the financial consequences have not been fully determined. The $5.397 billion figure is not a confirmed amount recovered or an immediately payable award.

Further court proceedings will address the outstanding financial and related matters.

How Undisclosed Borrowing Concealed Financial Risks

A central finding concerned the use of financial arrangements that concealed the true extent of NMC's borrowing.

According to the judgment, the group used supplier financing structures involving invoices for goods or services that were not intended to be supplied.

These arrangements allowed financing to be obtained while obscuring the underlying nature of the borrowing.

The court also examined misleading financial statements and the concealment of liabilities from those relying on the company's reported accounts.

Such arrangements demonstrate why financial analysis must sometimes extend beyond published financial statements.

Financial documentation may appear consistent with ordinary commercial activity while concealing more complex relationships between companies, counterparties and individuals.

Where significant commercial decisions are involved, independent examination of ownership structures, connected entities and financial representations can provide additional context.

This is particularly relevant to investors, lenders and businesses considering transactions involving complex corporate groups.

The Importance of Corporate Due Diligence

The NMC Health judgment illustrates the potential consequences of relying on incomplete information about a company's finances, management and commercial relationships.

Corporate Due Diligence seeks to establish a clearer understanding of the people, entities and risks associated with a proposed business relationship.

Depending on the circumstances, enquiries may examine:

• Corporate ownership and beneficial interests.
• Current and historical directorships.
• Related companies and commercial relationships.
• Regulatory and litigation histories.
• Financial discrepancies and material inconsistencies.
• Potential conflicts of interest.
• Relevant adverse media and reputational concerns.
• International corporate connections.

For investors and commercial partners, these enquiries can help identify issues requiring further clarification before entering significant transactions.

However, Due Diligence cannot guarantee the detection of concealed fraud, particularly where relevant financial information is unavailable or deliberately misrepresented.

The objective is to independently verify material information wherever possible and provide decision-makers with a more complete assessment of the available evidence.

Conflict Advisory Group provides Due Diligence Services to organisations, investors and professional advisers seeking to understand corporate relationships and assess commercial risks in the UAE and internationally.

Why Corporate Intelligence Matters

Complex corporate failures may involve interconnected businesses, multiple decision-makers and financial arrangements spanning several jurisdictions.

Establishing how these relationships operate can be essential when examining suspected misconduct.

Corporate Intelligence can assist with identifying relevant companies, individuals, ownership interests and connections that may not be immediately apparent from information supplied by the parties involved.

Research may include the examination of corporate records, historical appointments, litigation, regulatory developments and other lawfully available sources.

Where several businesses are connected through common directors, shareholders or commercial arrangements, mapping those relationships can help establish a clearer picture of the wider corporate structure.

In disputes involving alleged financial misconduct, this information may also assist legal advisers in determining which entities or individuals require further examination.

Importantly, an association between companies or individuals does not itself establish wrongdoing.

Findings must be supported by reliable information and interpreted within the appropriate commercial and legal context.

The Role of Asset Tracing in Corporate Fraud

Another significant consideration arising from the NMC proceedings is the identification and movement of corporate assets.

The court examined the misappropriation of funds and transfers connected to the group.

In complex financial disputes, understanding where assets have moved can be an important part of establishing the available options for creditors, administrators and legal advisers.

Asset Tracing may assist with identifying:

• Corporate interests associated with relevant individuals.
• Property and other identifiable assets.
• Shareholdings and beneficial ownership relationships.
• Connections between businesses and financial counterparties.
• Historical transfers and relevant transaction pathways.
• Assets potentially held through international corporate structures.

Such enquiries can help develop evidence concerning the financial position of relevant parties and identify matters requiring further legal consideration.

However, identifying an asset is not the same as recovering it.

The ability to freeze, seize or recover assets depends on applicable law, available evidence, jurisdiction and appropriate legal procedures.

Conflict Advisory Group's Asset Tracing Services support businesses, creditors, family offices and legal advisers seeking to establish ownership interests and relevant financial connections across the UAE and international jurisdictions.

Lessons for UAE Businesses and Investors

The NMC Health judgment offers important lessons for organisations operating in complex commercial environments.

Where businesses rely on financial information supplied by counterparties, independent verification can help identify discrepancies and highlight matters requiring additional scrutiny.

Organisations should also consider whether their governance and financial oversight arrangements provide sufficient visibility over significant transactions, related-party relationships and borrowing commitments.

For investors, the case highlights the importance of understanding the wider corporate structure behind a proposed transaction.

For lenders and professional advisers, it demonstrates why financial representations should be assessed alongside available corporate, regulatory and legal information.

The case also reinforces the importance of preserving documentary evidence when concerns emerge.

Clear records of transactions, corporate relationships and financial decisions can become essential during subsequent legal proceedings.

Although no single preventative measure can eliminate corporate fraud risk, proportionate Due Diligence and effective governance can support more informed commercial decisions.

Supporting Complex Commercial and Legal Matters

Financial disputes involving substantial corporate structures often require coordinated analysis of documentary evidence, commercial relationships and asset ownership.

Legal advisers may need to establish the roles of relevant individuals, identify connected entities and assess where further evidence may be available.

Where transactions cross international borders, these enquiries can become particularly complex.

Corporate Intelligence, Asset Tracing and structured evidence review can provide factual information to support legal strategy, settlement considerations and potential enforcement proceedings.

The scope of any enquiry should reflect the objectives of the client, the jurisdictions involved and the information that can lawfully be obtained.

How Conflict Advisory Group Can Assist

Conflict Advisory Group supports businesses, investors, family offices and legal professionals with Corporate Intelligence, Due Diligence and Asset Tracing in the UAE and internationally.

Our services can assist clients seeking to understand complex corporate relationships, identify relevant financial interests and establish reliable information concerning individuals, companies and commercial arrangements.

Through our international network, we can coordinate enquiries involving multiple jurisdictions where appropriate.

Our approach focuses on independent verification, discreet information gathering and clear reporting that distinguishes established facts from matters requiring further examination.

For organisations considering significant investments, dealing with complex commercial disputes or seeking greater visibility over corporate relationships, Conflict Advisory Group can provide tailored intelligence and advisory support.

Contact our team to discuss your Due Diligence or Asset Tracing requirements.