The Lilavati Kirtilal Mehta Medical Trust, which manages the well-known Lilavati Hospital in Mumbai, has initiated civil and criminal legal proceedings against HDFC Bank's MD and CEO, Sashidhar Jagdishan. The ₹1,000 crore defamation suit highlights serious accusations of reputational harm caused by allegedly false and malicious claims. The dispute underscores significant tensions between the Trust and the bank, despite the Trust asserting it has no borrowing relationship with HDFC Bank.
The Lilavati Kirtilal Mehta Medical Trust has filed a civil defamation lawsuit amounting to ₹1,000 crore against HDFC Bank MD and CEO, Sashidhar Jagdishan. According to a statement issued by the Trust, the legal action is a response to what it describes as a deliberate and malicious attempt to damage its reputation. The Trust has stated that the CEO made several false remarks directed at both the Trust and its permanent trustee, Prashant Mehta.
In addition to the civil proceedings, the Trust has filed a criminal complaint with the Metropolitan Magistrate in Girgaon. The court has taken cognisance of the matter and issued notices to the CEO, the spokesperson, and the Corporate Communication Head of HDFC Bank. The criminal case is aimed at addressing the allegedly defamatory public statements that have affected the Trust’s public image.
The Lilavati Trust has strongly denied any borrowing relationship with HDFC Bank. It clarified that neither the Trust nor Prashant Mehta has ever borrowed funds from the bank. On the contrary, the Trust claimed to be a lender, having deposited ₹48 crore with the bank in the form of fixed deposits and bonds. This clarification aims to counter claims that attempt to link the Trust to unresolved loans.
A key allegation the Trust is contesting involves its supposed connection to Splendour Gems Ltd, formerly known as Beautiful Diamonds Ltd. The Trust has asserted that neither it nor Prashant Mehta has any link to the company or its financial affairs. The statements made by the CEO of HDFC Bank that suggest otherwise have been described by the Trust as misleading and false.
In its defence, HDFC Bank has refuted the charges and released a statement accusing certain individuals of misusing the legal system to obstruct the recovery process of loans. The bank claimed that the defamation suit is part of a larger attempt to derail the legal recovery of dues from Splendour Gems Ltd. It reiterated its commitment to protecting the interests of its stakeholders and warned of initiating legal action against those making baseless allegations.
Read More: HDFC Bank CEO Moves to Bombay High Court Over FIR Filed by Lilavati Trust!
This development marks a significant legal standoff between a reputed charitable trust managing a premier hospital in Mumbai and one of India’s largest private sector banks. The matter now rests with the judiciary, as both sides prepare to present their claims and defences through the proper legal channels.
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Published on: Jun 21, 2025, 11:25 AM IST
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