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Lilavati Kirtilal Mehta Medical Trust on Monday, 9 June 2025, pinned a fresh set of allegations against HDFC Bank CEO; Key points to know
Lilavati Trust vs HDFC Bank: The Dispute, The Claims
Lilavati Trust-HDFC Bank Dispute: The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has firmly denied any outstanding dues to HDFC Bank and its MD and CEO, Sashidhar Jagdishan, stating that neither the trust nor its permanent trustee, Prashant Kishor Mehta, owes any money to the private lender. In a statement cited by PTI, LKMM Trust also clarified that it has never borrowed from HDFC Bank or had any links to Splendour Gems Ltd, the borrowing company.
Read: Who Is Sashidhar Jagdishan? HDFC Bank MD At The Centre Of Fraud Allegations
In a serious escalation, the trust alleged that a bribe of Rs 2.05 crore was paid to Jagdishan to help the Chetan Mehta Group remain “illegally” in control of the trust. Notably, the trust claimed that the HDFC Bank CEO did not deny receiving this alleged bribe, according to PTI reports.
Timeline of the Dispute:
- Loan in 1995: HDFC Bank and a consortium of banks granted a loan to Mehta family-owned Splendour Gems Ltd.
- In 2001: Splendour Gems Ltd 2001 was officially termed a loan defaulter, and HDFC Bank started seeking options to recover the public money which was issued to the company as a loan.
- 2004 Tribunal Order: The Debt Recovery Tribunal granted HDFC Bank a ‘recovery certificate’ in 2004, which gave the institutional lender the authority to recover the outstanding dues that remain “substantially unpaid” by the defaulter, the bank’s official statement later showed.
- Fresh Allegations (2025): On June 8, 2025, LKMM Trust, which runs Mumbai’s Lilavati Hospital, accused HDFC Bank CEO Sashidhar Jagdishan and eight others of financial fraud and fund misappropriation.
- HDFC Bank’s Response: After the allegations made by the Lilavati Trust, the private bank officially refuted the claims as “baseless and malicious”, denying the company’s or executive’s involvement in such financial fraud affairs.“The allegations made by Lilavati Trust, its trustees, and officials against the bank’s MD and CEO (managing director and chief executive officer) are baseless and malicious. The outrageous and preposterous allegations are strongly and categorically denied,” said the bank’s spokesperson in an official statement on Sunday.
- FIR by Mehta Family: In response to the Mehta family FIR, HDFC Bank refuted the claims and said that the defaulters were trying to launch ‘personal attacks’ against the bank and its executives to malign their reputation and pressure the lender to halt their recovery actions. The bank also called the FIR “frivolous” on Sunday.“HDFC Bank will continue to pursue all lawful remedies to recover public funds and address the retaliatory actions taken by the Mehta family as well as to defend the reputation and integrity of the Bank, its Directors and other employees,” said the bank in its statement.
- Bank’s Denial: HDFC Bank said the FIR was a “frivolous” attempt to derail recovery efforts and tarnish its reputation.
- Stock Market Reaction: HDFC Bank shares remained largely unaffected, ending flat at Rs 1,978.60 on Monday.
- New Allegations by Trust: On June 9, LKMM Trust released fresh allegations, claiming that the HDFC Bank CEO accepted Rs 2.05 crore in bribes, forged evidence, and faces a civil and criminal defamation case worth Rs 1,000 crore.
The Mehta family-run trust also rejected HDFC Bank’s official response, maintaining that the allegations have already been examined by judicial authorities prior to the FIR’s registration.
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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