Finablr founder Shetty resigns, UK suspends units’ registrations

(Reuters) – Payments group Finablr said on Monday its founder, Indian billionaire BR Shetty, stepped down as co-chairman, and British tax authorities suspended business registration of two of the company’s subsidiaries.

The company said it received a notice from UK’s tax and customs authority, HM Revenue & Customs, on suspended business registration of its UAE Exchange UK Ltd and Xpress Money Services Ltd.

“The company intends to work with HMRC to attempt to restore the registrations,” the UK-headquartered firm said.

Finablr, which warned of potential insolvency in March, last month brought in law firm Skadden to investigate any historic potential misconduct and misappropriation of the company’s assets.

Some of the companies backed by Shetty, who owns a controlling stake in Finablr, have come under severe financial strain after it emerged earlier this year they had undisclosed debt and alleged fraudulent transactions had taken place.

In April Shetty-founded NMC Health, UAE’s biggest private hospital group, went into administration.

Shetty has said in the past a probe conducted by his own advisers indicated alleged fraud had taken place at NMC Health and Finablr.

(Reporting by Pushkala Aripaka and Shanima A in Bengaluru and Saeed Azhar; Editing by Shailesh Kuber and Shinjini Ganguli)