HDFC Bank CEO Sashidhar Jagdishan moves Bombay High Court against Lilavati Trust - Check details

HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan has approached the Bombay High Court seeking the quashing of an FIR (First Information Report) filed against him by the Lilavati Kirtilal Mehta Medical Trust, a report said on Wednesday.

The Lilavati Hospital in Mumbai is owned by the Lilavati Kirtilal Mehta Medical Trust.

According to a report by Bar and Bench, the matter came up for hearing before a bench comprising Justice AS Gadkari and Justice Rajesh Patil. However, both judges recused themselves from hearing the case and it will be passed on to a different bench for hearing.

FIR filed against HDFC Bank CEO

Earlier this month, the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) lodged an FIR against HDFC Bank MD and CEO Sashidhar Jagdishan, demanding his immediate suspension and prosecution.

The FIR accused Jagdishan of taking a bribe of ₹2.05 crore to enable Chetan Mehta group remain illegally in control of the LKMM Trust. The FIR had called upon the board of HDFC Bank, the RBI, SEBI and the Finance Ministry to suspend Jagdishan from all executive and board roles with immediate effect.

“An FIR...was registered under orders of the Bombay Magistrate Court after a seized cash diary revealed ₹14.42 crore misappropriated by trustees, of which ₹2.05 crore was received by Jagdishan, establishing his direct involvement,” the Trust had said in its complaint.

HDFC Bank denies charges

The HDFC Bank had denied all the charges against its CEO when the complaint was filed.

During, Wednesday's hearing, Senior Advocate Amit Desai, representing Jagdishan, also denied all allegations, Bar and Bench reported.

“It’s one of the most absurd allegations that he received money from trustees. The absurdity of the allegation is that he allegedly received ₹2 crore to harass HDFC Bank borrowers,” Desai submitted, according to the publication.

The advocate further suggested that the FIR is a retaliatory move, which stems from HDFC Bank's recovery proceedings against Splendour Gems Limited, a company owned by the Mehta family. He said that the company has defaulted on loans worth ₹65.22 crore as of May 31.

Desai further added that “these actions follow recovery proceedings initiated by the bank against a company owned by the father of one of the trustees.”

Earlier in a statement on June 7, the Trust claimed that the FIRs against the HDFC Bank MD and CEO were not based on allegations alone but were substantiated.