The Lilavati Kirtilal Mehta Medical Trust (LKMM), custodian of one of Mumbai’s most prominent private hospitals, has levelled serious allegations of financial misconduct against HDFC Bank CEO Sashidhar Jagdishan. In a filing to a Mumbai court, trustees accused Jagdishan of accepting ₹2.05 crore from a former trust member, allegedly to harass the father of a current trustee. The alleged transaction was documented in a handwritten diary now submitted as evidence by the petitioners.
According to LKMM, the bank executive’s actions amounted to criminal conspiracy and abuse of fiduciary position. They’re demanding his suspension and prosecution, citing a court order and FIR filed last week. “The top executive was weaponized to settle personal scores,” claimed one trustee familiar with the filing.
An HDFC Bank spokesperson called the claims “outrageous and preposterous,” suggesting Jagdishan was being targeted to stall recovery of outstanding loans from the Mehta family, including permanent trustee Prashant Mehta. “This is a misuse of the legal system to dodge accountability,” the spokesperson added.
A Legacy Divided: Feud Between Old and New Trustees Boils Over
At the heart of this controversy lies a deep-rooted dispute within the Lilavati Trust itself. The trust, founded in 1978 by Kirtilal Mehta, has long been managed by members of his extended family. But in 2023, the Kishore Mehta faction gained control after a protracted legal tussle with descendants of Vijay Mehta, another son of the founder. The victory triggered a wave of internal audits, legal filings, and allegations against former office-bearers.
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The court filings accuse eight individuals, including former trustees, of embezzling funds from the trust over several years. Charges include financial fraud, criminal conspiracy, and obstruction of justice. At the core of this legal avalanche are transactions allegedly hidden in diaries, fake investments in real estate firms, and manipulated financial records spanning back to 2001.
The Bigger Picture: A Trust Shaken by Scandals and FIRs
The allegations against Jagdishan emerged just hours after Mumbai Police’s Economic Offences Wing registered a separate FIR against trustee Prashant Mehta for the misappropriation of ₹11.52 crore. He, along with several family members including Rashmi, Niket, Sushil, and Chetan Mehta, is accused of siphoning trust funds between 2001 and 2003 and investing ₹16.52 crore into shell real estate entities like Mayfair Realtors Pvt. Ltd and Vesta India Ltd. A significant portion of these alleged transactions was reportedly conducted in cash and never reflected in official accounts.
As per NDTV and Free Press Journal reports, this is the third major FIR tied to the Lilavati Trust in recent years. The enforcement agencies are now working to map the fund flow, recover misappropriated amounts, and verify allegations of evidence tampering.
While HDFC Bank stands by its CEO, the trustees of LKMM seem intent on pursuing every legal avenue. The affair not only underscores tensions between legacy and reform but also raises critical questions about how personal vendettas, institutional governance, and big finance can become inextricably intertwined.