There is a fresh twist in the HDFC Bank Vs Lilavati Trust row. The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has initiated a Rs 1,000 crore civil defamation lawsuit against HDFC Bank Managing Director and CEO, Sashidhar Jagdishan. The Trust has accused him of making false and defamatory statements against both the Trust and its Permanent Trustee, Prashant Mehta.
Alongside the civil case, the Trust has also filed a criminal defamation complaint before the Metropolitan Magistrate in Girgaon. The court has issued a notice to Jagdishan, the bank’s spokesperson, and its corporate communication head. The Trust claims these actions mark an important step in holding the HDFC Bank CEO accountable for what it describes as a targeted smear campaign.
HDFC Bank vs Lilavati row: Questions over Rs 65 crore loan
The Trust has raised questions about a sudden Rs 65 crore loan claim by HDFC Bank, especially when earlier documents showed an outstanding amount of only Rs 5 crore. The Trust points out that this matter remained dormant from 2005 -2019 and only resurfaced after Jagdishan’s personal engagement with Chetan Mehta.
Calling the Rs 65 crore figure a “figment of imagination,” the Trust has accused Jagdishan of creating a diversion to draw attention away from his own alleged misconduct.
According to the Trust, HDFC Bank has cited widely varying figures in different legal documents: Rs 4.9 crore, Rs 450 crore, and now Rs 65.22 crore, but has never produced a loan agreement or official ledger to support any of these claims. It has denied any link with Splendour Gems, which it says has been falsely associated with the Trust by the bank’s CEO.
Trust questions 14-year silence by HDFC Bank
It questioned why no action was taken between 2005 and 2019 if a genuine dispute existed. The Trust also asked why Jagdishan has not addressed or notified regulators about the criminal defamation case against him.
“We have full faith in the Indian judiciary, unlike Jagdishan, who has attempted to label valid judicial orders and FIRs as frivolous. We have followed the due process of law at every step,” said the Trust.
Trust accuses Jagdishan of accepting free treatment and depositing ₹48 crore
The Trust has alleged that Jagdishan accepted free medical treatment, facilitated a Rs 2.05 crore bribe with Chetan Mehta, accepted Rs 48 crore in deposits without approval from founder trustees, and offered Rs 1.5 crore to doctors under the guise of CSR. The Rs 48 crore was deposited despite an injunction order being in place, which the Trust says amounts to contempt of court.
Dubai court convicts Chetan Mehta
In a related development, Chetan Mehta — who the Trust says supports Jagdishan — was convicted of criminal defamation in Dubai on June 18. The court fined him AED 10,000 and allowed Prashant Mehta to pursue civil damages there. Authorities also seized his mobile phone.
“This is not just a legal battle”
The Trust has said it will continue to fight through all legal means to expose what it sees as a misuse of power. “This is not just a legal battle, it is a stand for truth and institutional accountability. When the head of one of India’s largest financial institutions attacks a public charitable Trust with falsehoods, while failing to produce even basic documentation, it becomes clear that the objective is not justice but intimidation,” said Prashant Mehta, Permanent Trustee of LKMM Trust.
He added, “LKMM Trust remains committed to pursuing every legal channel, to expose the misuse of institutional power and safeguard the values of transparency, accountability, and justice. No institution, however powerful, is above the law.”