Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2026
BR Shetty files $15 billion suit against Bank of Baroda alleging it enabled NMC fraud
Lawsuit filed
NMC Healthcare founder Dr BR Shetty filed a civil suit valued at $15 billion in the Bombay High Court against Bank of Baroda and 25 other defendants. He alleged that the state-run lender acted as an "instrument of fraud" through which former senior executives, including Prasanth and Promoth Manghat, siphoned funds from group entities, concealed debt, and exposed him to liabilities through allegedly forged guarantees. Shetty claimed the bank ignored AML alerts, permitted round-tripping transactions, and operated accounts linked to sham suppliers. Bank of Baroda did not respond to a request for comment.
NMC Healthcare founder Dr BR Shetty has filed a civil suit valued at $15 billion in the Bombay High Court against Bank of Baroda and 25 other defendants, alleging the state-run lender acted as an "instrument of fraud" through which former senior executives including Prasanth and Promoth Manghat siphoned funds from group entities, concealed debt, and exposed him to liabilities through allegedly forged guarantees. Shetty claims the bank ignored AML alerts, permitted round-tripping transactions, and operated accounts linked to sham suppliers. Bank of Baroda did not respond to a request for comment.
Stated objective. Direct and consequential damages, an additional $5 billion for alleged loss of reputation and goodwill, disclosure of banking records, preservation of electronic evidence, and attachment of assets allegedly acquired using diverted funds
Source excerpt
claims the bank ignored repeated anti-money laundering (AML) alerts, permitted suspicious round-tripping transactions, opened and operated accounts linked to sham suppliers, and failed to prevent large-scale diversion of funds between NMC, UAE Exchange, Neopharma and related entities
Apart from direct and consequential damages, Shetty is also seeking an additional $5 billion from Bank of Baroda for the alleged loss of reputation and goodwill. He has further sought disclosure of banking records, preservation of electronic evidence, and attachment of assets allegedly acquired using diverted funds.
In the suit, valued at $15 billion (approximately Rs 1.44 lakh crore), Shetty, acting through his constituted attorney Dr Shishir Shetty, has alleged that Bank of Baroda served as an “instrument of fraud” through which former senior executives, including brothers Prasanth Manghat and Promoth Manghat, along with other associates, siphoned funds from group entities, concealed debt and exposed him to liabilities through allegedly forged guarantees.
2026
Bank of Baroda confirmed customer information exposure
Issue disclosure
Bank of Baroda confirmed a cybersecurity incident after customer information and internal documents allegedly linked to the lender appeared on the dark web. The bank said a compromised employee email account resulted in unauthorized access to certain data, and that it implemented containment measures and initiated a forensic investigation.
Company response
Investigation — Bank of Baroda
The lender also initiated a forensic investigation and said it was working with the relevant authorities.
Remediation — Bank of Baroda
Bank of Baroda said it had identified the incident promptly and implemented containment measures.
Source excerpt
The lender also initiated a forensic investigation and said it was working with the relevant authorities.
Bank of Baroda said it had identified the incident promptly and implemented containment measures.
The bank said the incident involved a compromised employee email account, resulting in unauthorised access to certain data.
2023
bob World onboarding controls
The Reserve Bank of India directed Bank of Baroda to suspend new customer onboarding through bob World because of supervisory concerns over unauthorized mobile-number linking. The measure was lifted in 2024 after the bank addressed the identified issues.
2020
SEBI fines SBI, LIC and Bank of Baroda
Fine or penalty
In a regulatory action, the Securities and Exchange Board of India imposed penalties of Rs 10 lakh each on State Bank of India, Life Insurance Corporation of India and Bank of Baroda. The penalties were levied for violations of mutual fund regulations. The three entities were each fined the same amount. The action was reported as a fine by the market regulator for non-compliance with mutual fund norms.
India's Securities and Exchange Board imposed penalties of Rs 10 lakh each on State Bank of India, Life Insurance Corporation of India and Bank of Baroda for violations of mutual fund regulations.
Source excerpt
The Securities and Exchange Board of India (SEBI) on Friday imposed penalties of Rs 10 lakh each on the State Bank of India (SBI), the Life Insurance Corp of India (LIC) and the Bank of Baroda (BoB) for violation of its mutual fund regulations.
2017
South Africa Gupta-linked compliance controversy
South Africa’s Financial Intelligence Centre fined Bank of Baroda after identifying suspicious transactions involving accounts associated with companies linked to the Gupta family. Reports described weaknesses in compliance procedures and alleged that the bank’s local operations processed transactions and guarantees without adequate controls. Bank of Baroda later decided to withdraw from South Africa.