Sashidhar Jagdishan, HDFC Bank MD and CEO, is likely to be summoned by Mumbai Police in the Lilavati Hospital Trust case, says a CNBC-TV18 report. The report adds that the Mumbai Police’s Economic Offences Wing will summon all the accused in the case for questioning.
The Economic Offences Wing of Mumbai Police is investigating the case of financial fraud and misappropriation of funds of Lilavati Kirtilal Mehta Medical Trust. Earlier in July, the HDFC Bank CEO filed a petition in the Bombay High Court against the FIR for cheating and fraud, seeking interim protection from police summons.
Earlier, on September 4, the Bombay High Court issued an order that provided Jagdishan interim relief from summons from the Economic Offences Wing. “We deem it appropriate to direct the EOW not to summon the Petitioners till the appropriate order on grant of interim relief or otherwise is passed,” the High Court order said.
What is the whole issue?
In July of this year, the trustees of the Lilavati Kirtilal Mehta Medical Trust, which operates the well-known Lilavati Hospital in Mumbai, accused its former trustees of diverting and misusing approximately Rs 1,300 crore of the trust’s funds.
The current trustees of Lilavati Kirtilal Mehta Medical Trust filed an FIR, where they accused Sashidhar Jagdishan of receiving an account cash of Rs 2.05 crore from the former trustees. The allegations also include Jagdishan facilitating a deposit of Rs 25 crore of the Trust’s funds without the trustees’ approval and proper oversight.
Response from Jagdishan and bank
During a hearing in the Bombay High Court in July, Jagdishan submitted in the court that the FIR against him in the case is vexatious, frivolous and absurd.
Additionally, in an official response, HDFC Bank refuted all the claims made by the Livavati Medical Trust. “The allegations and insinuations made by the trustees are devoid of any iota of truth whatsoever. Neither the Bank nor its CEO have engaged in any activity that is illegal, unethical or improper.” HDFC Bank said in a statement