The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has called for punitive action against HDFC Bank Managing Director and CEO Sashidhar Jagdishan, accusing him of involvement in alleged financial fraud related to the Trust’s accounts. HDFC Bank strongly denied the allegations, labelling them “outrageous and preposterous,” and described the claims as a “baseless and malicious attack.”
What HDFC said in its defence?
In the statement, an HDFC Bank spokesperson defended the bank and its CEO, asserting that the allegations were a “mala fide personal attack” designed to obstruct legitimate recovery efforts. The bank disclosed that Trustee Prashant Mehta and his family members allegedly owe substantial sums to HDFC Bank, which have remained unpaid for over two decades.
“HDFC Bank has taken recovery and enforcement actions in accordance with the law over the last twenty years,” the spokesperson said. “However, these efforts have been met with vexatious legal responses.”
The spokesperson further added that Jagdishan is being unfairly targeted by individuals attempting to misuse legal avenues to delay or block the recovery of dues. “The intent is to intimidate the Bank and its MD & CEO from carrying out their legal mandate of recovering outstanding loans. The bank will pursue all legal remedies to protect its stakeholders,” the statement said.
Lilavati Trust alleges violations of RBI norms
In a contrasting statement, the Lilavati Trust referred to the Reserve Bank of India’s “Fit and Proper” criteria, alleging that Jagdishan’s continued position as CEO violates regulatory standards. The Trust accused him of conspiracy, corruption, and breach of trust, stating that his leadership poses “a serious risk of evidence tampering, institutional interference, and intimidation of witnesses.”
“The offer of Rs 1.5 crore disguised as CSR funds to hospital staff shows intent to destroy evidence and obstruct justice,” the Trust alleged. Despite judicial findings and multiple complaints, HDFC Bank failed to act, violating Section 166 of the Companies Act and SEBI governance mandates, the Trust alleged.
According to an NDTV report, the Trust has also filed a complaint naming eight individuals—including former office bearers—accusing them of embezzlement and financial misconduct. The complaint, based on an FIR filed earlier this month, calls for the suspension and prosecution of those involved.