HDFC Bank has firmly rejected accusations made by Mumbai-based Lilavati Kirtilal Mehta Medical Trust against its MD and CEO, Sashidhar Jagdishan. The allegations claim Jagdishan’s involvement in a ₹14.42 crore financial misappropriation linked to the Trust’s trustees. HDFC Bank labeled the claims as baseless, malicious, and an attempt to derail recovery proceedings involving unpaid dues from the Trust’s key members.
HDFC Bank, one of the country’s largest private sector banks, has strongly denied allegations made by Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), which oversees Lilavati Hospital in Mumbai, against its MD and CEO, Sashidhar Jagdishan.
The Trust had accused Jagdishan of receiving ₹2.05 crore as part of a ₹14.42 crore financial fraud, based on findings from a seized diary and an FIR registered following a Bombay Magistrate Court order. The Trust has appealed to regulatory bodies, including the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Finance Ministry, to suspend Jagdishan pending investigations.
HDFC Bank, however, categorically dismissed the allegations. “The outrageous and preposterous allegations are strongly and categorically denied,” said a bank spokesperson in an official statement.
The bank alleged that the claims are a retaliatory move by trustee Prashant Mehta and his family, who defaulted on substantial loans borrowed from HDFC Bank. The statement further clarified that “unscrupulous persons are abusing the legal process” to derail recovery efforts, which have been ongoing for over two decades and have reached the Supreme Court.
“Having failed legally at every level, they have now resorted to mala fide personal attacks on the MD & CEO,” the bank said, describing it as an attempt to “intimidate and bully” the institution into halting lawful recovery operations.
The Trust also accused the bank of offering ₹1.5 crore in CSR funds to hospital staff as a method of obstructing justice and destroying evidence. It further alleged violations of Section 166 of the Companies Act and SEBI governance rules due to inaction by HDFC Bank.
Despite the charges, HDFC Bank reiterated its support for Jagdishan and its commitment to follow all due legal processes to recover outstanding dues.
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