A First Information Report (FIR) has been lodged against Sashidhar Jagdishan, Managing Director and Chief Executive Officer of HDFC Bank, alongside eight others—including former bank employees—over alleged financial misconduct tied to the Lilavati Kirtilal Mehta Medical Trust, sources say. The FIR, filed in a Mumbai court, accuses them of diverting approximately INR 14.42 crore, of which INR 2.05 crore allegedly ended up with Jagdishan.
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Allegations Against the CEO
The complaint, initiated by the LKMM Trust—which manages Mumbai’s Lilavati Hospital—claims that funds were misappropriated and used in part to harass a trustee’s relative. Handwritten entries in a seized cash diary were cited as evidence of the INR 2.05 crore payment to Jagdishan. The Trust has urged regulatory authorities, including the RBI and SEBI, to suspend and prosecute the CEO.
HDFC Bank’s Rebuttal and Defence
HDFC Bank has strongly denied the allegations, labelling them as “malicious and baseless.” It asserts that these accusations are part of a retaliatory attempt by the Mehta family—who defaulted on a longstanding overdue loan—to derail ongoing recovery proceedings. The bank confirmed that the Mehta family’s company, Splendour Gems Limited, has an unpaid loan balance of around INR 65 crore, which it is seeking to recover through legal channels.
These developments raise serious questions about governance and internal controls at one of India’s largest private-sector lenders. As chair of a major financial institution, Jagdishan leads a bank that recently completed a transformative merger with HDFC Ltd., boosting its market cap to over INR 12 trillion. His reputation as a chartered accountant and seasoned banker has now come under scrutiny amid these allegations.
What’s Next?
While several benches of the High Court have recused themselves from hearing the CEO’s plea—citing conflicts of interest—more developments are expected as the legal process unfolds. For now, investor confidence and the bank’s reputation are at stake, with stakeholders closely watching how this unfolding case impacts governance standards across India’s banking sector.
