Chairman of Travelex’s parent company Finablr quits in wake of HMRC crackdown
BR Shetty stepped down as Finablr chairman with immediate effect yesterday, with no explanation given
The chairman of Travelex’s parent company has resigned amid a growing accounting scandal.
B R Shetty stepped down from his role at Finablr with immediate effect yesterday, with no explanation given for his departure in a one-sentence statement to the stock market. However, the Indian billionaire’s exit comes as Finablr, which had its shares suspended in March, investigates the shock discovery of more than £700million in previously secret debt.
The company said the debt had not been properly disclosed to its board or investors and fears the cash may have been used for fraudulent purposes. The revelation bore similarities to events at another Shetty-founded company, NMC Health, which is also probing huge debts that had previously not been disclosed to investors.
Shetty resigned from NMC earlier this year but until now had kept his seat on Finablr’s board. He resigned from Travelex’s board in March.
The 78-year-old denies any wrongdoing and insists he is the victim of a fraud, claiming that his signature was forged to obtain loans and other forms of credit via his companies.
He owns 63 per cent of Finablr but cannot sell these shares after a worldwide freeze of his assets was ordered by a court in Dubai.
The announcement of his exit yesterday came as Finablr revealed HM Revenue & Customs had suspended the business registration of its subsidiary, Xpress Money Service, meaning it cannot conduct business.
HMRC has also proposed suspending UAE Exchange UK, which is another of its subsidiaries, Finablr said.
In a statement, it added: ‘The company intends to work with HMRC to attempt to restore the registrations.’