The accusations and counter-accusations between Lilavati Kirtilal Mehta Medical Trust (LKMMT) and HDFC Bank seems to be only escalating with the most recent being the private sector lender’s strong worded statement denying all allegations. The banking major, in a statement, said that the the timing and manner of allegations against the bank’s Managing Director and CEO, Sashidhar Jagdishan, demonstrate the devious objective of preventing the Bank from carrying out its legal mandate of recovery and enforcement.
HDFC Bank released a statement in a regulatory filing wherein it categorically denied what it termed as “false, malicious and defamatory” allegations and insinuations made by the trustees of LKMMT.
“We reiterate our unequivocal, categorical and unambiguous denial and condemnation of these egregiously malicious, false and defamatory allegations and insinuations,” it said.
The bank claimed the allegations were not only devoid of truth but also deliberately timed and structured to derail HDFC Bank’s legal efforts to recover dues and enforce its mandate. This comes just hours after Lilavati Trust demanded answers from Sashidhar Jagdishan flagging discrepancies in its transactions with LKMMT.
Key highlights from HDFC Bank’s statement:
Total denial of allegations: HDFC Bank has strongly denied the allegations made by the trustees of Lilavati Trust, calling them entirely baseless and devoid of “any iota of truth whatsoever”. It added, “Neither the Bank nor its MD & CEO have engaged in any activity that is illegal, unethical or improper.”
Compliance and governance: The Bank said that it is in full compliance with Indian laws and follows the highest standards of governance and ethics.
Allegations deemed tactically timed: According to HDFC Bank, the timing and manner in which these allegations were made suggest a deliberate attempt to obstruct its lawful recovery and enforcement actions.
Legal action underway: The Bank confirmed that it has initiated appropriate legal proceedings to defend its position and reputation.
While reaffirming its commitment to ethical practices, the Bank “reserves all rights to pursue appropriate legal remedies including but not limited to recovery, enforcement and defamation proceedings against the erring parties”.
Further, HDFC Bank said, “The Bank does not see any necessity to respond/clarify on daily basis in respect of such baseless, frivolous and malicious campaign initiated by the Mehta family through LKMMT, which is done with a sole purpose of maligning the image/reputation of the Bank and its MD & CEO.”
The private sector lender also urged the public and media to exercise their critical judgement in reporting or amplifying the ‘unsubstantiated allegations and insinuations’. “These malafide efforts are aimed to bring to disrepute one of India’s finest banks and its leader. We are concerned about all our stakeholders and are on the verge of taking strong legal actions as per expert advice, against those who are initiating these baseless allegations with malafide and ulterior motives or involved in propagating the same,” it concluded.
Lilavati Trust flags ‘missing ledger’
Earlier, Lilavati Trust, in a statement, had said that despite repeated public claims and legal accusations, Sashidhar Jagdishan or HDFC Bank has never produced a single official loan ledger or agreement in court regarding its supposed transaction with LKMM Trust.
“Even more concerning, various documents from the bank reflect widely inconsistent loan amounts for instance, Rs 4.8 crore was cited initially, Rs 450 crore in another filing, and now Rs 65.22 crore which are just three examples of many of the company in question,” it said.
“A Rs 4.9 crore loan. Or was it Rs 65.22 crore? Or Rs 450 crore? Yet, despite all the noise, not a single official loan ledger has been presented in court of LKMM trust or Prashant Mehta,” said Prashant Mehta, Permanent Trustee.
To conclude… the standoff between HDFC Bank and LKMMT appears far from over, with both sides standing firm on their claims, and legal proceedings expected to intensify in the coming weeks.