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HDFC Bank CEO Sashidhar Jagdishan has moved the Bombay High Court to quash an FIR filed by the Lilavati Kirtilal Mehta Medical Trust
Lilavati Trust vs HDFC Bank
HDFC Bank Managing Director and CEO Sashidhar Jagdishan has approached the Bombay High Court, seeking the quashing of a First Information Report (FIR) filed against him by the Lilavati Kirtilal Mehta Medical Trust. The Trust, which owns and operates Mumbai’s well-known Lilavati Hospital, has accused Jagdishan of accepting a ₹2.05 crore bribe to aid the Chetan Mehta group in retaining unlawful control over the Trust’s operations, according to a report by Bar and Bench on Wednesday.
At the time of the report, HDFC Bank shares were trading at ₹1,926.10, down ₹3.50 or 0.18% on the BSE.
The matter was placed before a division bench comprising Justice A.S. Gadkari and Justice Rajesh Patil, who recused themselves from hearing the plea. The case now awaits fresh allocation.
The legal row between HDFC Bank and the Lilavati Trust has taken a sharp turn. On June 9, 2025, the Trust issued a detailed public statement, outlining what it termed a “summary of misdeeds” allegedly committed by Jagdishan. The Trust reiterated its claim that ₹2.05 crore was paid to Jagdishan in exchange for “financial advice in looting the Trust” and helping the Chetan Mehta group maintain control. “No denial by MD/CEO of these bribes and favours paid to him,” the statement read.
Among other serious accusations, the Trust claimed Jagdishan and his family received free medical treatment at Lilavati Hospital—an allegation the bank has not publicly denied. It also noted that the Trust had parked ₹48 crore with HDFC Bank in the form of fixed deposits and bonds since FY2022, asserting its role as a lender, not a borrower.
The Trust further alleged misuse of Corporate Social Responsibility (CSR) funds. It claimed ₹1.5 crore was offered “under alleged CSR” to tamper with or forge evidence—once again, allegedly without any rebuttal from the bank.
On the loan dispute front, the Trust said it has never borrowed money from HDFC Bank. “The LKMM Trust and Mr. Prashant Mehta have never been a borrower to HDFC Bank but a lender… They have deposited 48 crores,” the Trust emphasized.
Highlighting inconsistencies in court filings, the Trust pointed out that HDFC Bank had cited figures of ₹4.8 crore in one instance, ₹450 crore in another, and ₹65.22 crore more recently, without producing any loan agreement or ledger to support these claims. “How can one of India’s largest banks make three different claims about a single loan, and not back it up with a basic loan agreement and ledger?” questioned Prashant Mehta, Permanent Trustee of LKMM Trust.
The Trust also revealed that it has filed civil and criminal defamation proceedings totaling over ₹1,000 crore against Jagdishan, citing reputational and financial damage caused to the Trust.
In response, HDFC Bank issued a strong denial. “The allegations and insinuations made by the trustees are devoid of any iota of truth whatsoever,” a bank spokesperson said. “Neither the bank nor its CEO has engaged in any activity that is illegal, unethical or improper.”
The spokesperson added, “We reiterate our unequivocal, categorical and unambiguous denial and condemnation of these egregiously malicious, false and defamatory allegations.” The bank also signaled that it is “on the verge of taking strong legal actions as per expert advice” against those spreading “baseless allegations with malafide and ulterior motives.”
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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