HDFC Bank has categorically denied serious allegations made by Lilavati Kirtilal Mehta Medical Trust against its Managing Director and Chief Executive Officer, Sashidhar Jagdishan. As per PTI reports, the bank has issued an official statement describing the charges as not only baseless but also malicious and motivated by ulterior intent.
The Trust, which manages Lilavati Hospital in Mumbai, has approached key regulatory bodies including the Reserve Bank of India, the Securities and Exchange Board of India, and the Finance Ministry. It has demanded the immediate suspension of Jagdishan from all executive and board responsibilities, citing ongoing investigations.
A court-ordered investigation led to the registration of a First Information Report (FIR) following the discovery of a seized cash diary. As per PTI reports, the diary allegedly revealed the misappropriation of ₹14.42 crore by trustees, with ₹2.05 crore reportedly linked directly to Jagdishan.
The Trust maintains that this information establishes the CEO’s involvement in financial irregularities. It has also appealed to SEBI to bar him from holding any position in a regulated entity until the investigations are concluded.
HDFC Bank has responded by alleging that the accusations stem from an old loan recovery dispute involving Prashant Mehta and his family members, who are trustees of Lilavati Trust. As per PTI reports, the bank’s spokesperson stated that these individuals owe substantial dues to the bank, which have remained unpaid for over 2 decades.
The bank emphasised that Mehta and his associates have consistently resorted to vexatious legal actions at every stage of the recovery process. Despite failing in courts at all levels, including the Supreme Court, they have now targeted Jagdishan in what the bank describes as a malicious attempt to derail recovery efforts.
Read More: HDFC Bank Faces Legal Challenges Amid Loan Recovery Efforts Against Splendour Gems!
The Trust has also accused the bank of misusing corporate social responsibility funds. It alleges that an offer of ₹1.5 crore to hospital staff, presented under CSR, was intended to obstruct justice and destroy crucial evidence. These actions, the Trust claims, indicate a broader attempt to suppress findings from the ongoing investigation.
Furthermore, the Trust alleged that HDFC Bank’s failure to act on multiple complaints and judicial findings violates Section 166 of the Companies Act and SEBI's corporate governance standards.
HDFC Bank reiterated that the CEO is being unfairly targeted and that the bank will not be deterred by what it calls a campaign of intimidation. As per PTI reports, the bank declared that Jagdishan is the victim of malicious litigation brought on by parties seeking to avoid fulfilling their repayment obligations.
The bank concluded that it will continue to recover all outstanding loans using all methods permitted under the law, undeterred by personal attacks or public pressure.
As the dispute between HDFC Bank and Lilavati Trust continues to escalate, both sides stand firm in their narratives. As per PTI reports, regulatory and legal scrutiny will play a crucial role in determining the eventual outcome of this high-profile case.
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Published on: Jun 10, 2025, 1:57 PM IST
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