HDFC Bank Faces Legal Challenges Amid Loan Recovery Efforts Against Splendour Gems

HDFC Bank Limited has been engaged in recovery proceedings related to a long-outstanding loan granted to Splendour Gems Limited (formerly Beautiful Diamonds Limited), a company owned by the Mehta family. 

The loan, originally extended in 1995 along with other consortium banks, has seen dues amounting to ~₹65.22 crore as of May 31, 2025, including interest. Despite a recovery certificate issued by the Hon’ble Debts Recovery Tribunal in 2004 and subsequent enforcement actions, the outstanding amount remains unpaid. 

The defaulter company has also taken out borrowings from other banks and financial institutions.

Legal Actions by the Mehta Family

In an attempt to thwart the recovery efforts, members of the Mehta family have initiated multiple legal actions and complaints against HDFC Bank and its senior officials. These include criminal complaints, minority rights petitions, and representations to various regulatory bodies. Most of these complaints have either been dismissed or are currently facing legal challenges. HDFC Bank perceives these actions as retaliatory and motivated solely by the intent to evade repayment of dues.

Recent Developments: Malicious Allegations

Most recently, the Mehta family, through the Lilavati Kirtilal Medical Trust, filed a complaint against HDFC Bank’s MD & CEO and other senior officials. HDFC Bank strongly rejects these allegations, describing them as baseless, malicious, and a gross misuse of legal processes. The Bank believes these complaints are deliberate attempts to obstruct legitimate recovery proceedings and distract from the Mehta family’s failure to repay their dues.

Commitment to Ethics and Governance

HDFC Bank emphasises its commitment to maintaining the highest standards of corporate governance, ethics, transparency, and integrity. The Bank’s policies and procedures reflect its dedication to ethical conduct in all aspects of its operations. Despite facing personal attacks and legal hurdles, HDFC Bank remains focused on pursuing all lawful remedies to recover public funds.

Also Read: SBI or HDFC Bank: Where’s the Bigger Payout for Investors?

Conclusion

HDFC Bank stands firm in defending its reputation and integrity against unfounded allegations and retaliatory legal actions. The Bank will continue its efforts to recover the substantial dues owed by Splendour Gems Limited while upholding the principles of corporate governance and ethical conduct that define its operations. Through resilience and adherence to law, HDFC Bank aims to protect public funds and maintain trust with its stakeholders.

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