Why Bank of Baroda Paid $600 Million After Claiming No Provision

Shetty, who has long accused senior BoB officials of colluding with former NMC executives, questioned the timing. “If they have not done anything wrong, tell me why should they be even paying $1? They’re paying $600 million, that’s a big amount,” he told Mint. He declined to elaborate, saying the matter is before the courts.

Wasim Pangarkar, Shetty’s lawyer and senior partner at MZM Legal LLP, alleged that Shetty’s signatures were forged on banking documents and that senior Bank of Baroda officials worked in tandem with Manghat and his brothers to siphon funds. “It is very shocking… only during the conclusion of the trial, why all of a sudden you go ahead and settle this matter. Something has compelled the bank to sit across and settle and pay such a huge amount,” Pangarkar said.

Pangarkar also noted the institutional difference: “What is more important is that it’s a sovereign bank. It’s not a private bank. So when you’re paying $600 million, you’re not paying it from your own pocket. You’re paying the exchequer’s money.”

The administrators’ progress report dated May 15, 2026 said claims against Bank of Baroda and audit firm EY remained key recovery actions to maximise returns for creditors. The report also said the ADGM trial had concluded and judgment was reserved, making the pre-verdict settlement particularly significant.

Pangarkar said the $600 million will go to NMC’s administration estate for distribution to creditors, not to Shetty personally. Proceedings involving Shetty and former NMC executives continue separately.

The settlement closes one chapter for Bank of Baroda. The underlying allegations against former officials remain unresolved.