Lilavati Trust files ₹1,000 crore defamation suit against HDFC Bank CEO Sashidhar Jagdishan over ‘malicious’ statement

In a fresh twist in the HDFC Bank vs Lilavati Trust row, the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has filed a ₹1,000 crore civil defamation lawsuit against HDFC Bank MD and CEO Sashidhar Jagdishan.

The Lilavati Trust has accused the HDFC Bank CEO of making a series of “malicious, false and defamatory” statements against it and its permanent trustee, Prashant Mehta.

“The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has filed a ₹1,000 crore civil defamation lawsuit against Mr. Sashidhar Jagdishan, Managing Director & CEO of HDFC Bank, over a series of malicious, false, and defamatory statements made against the Trust and its Permanent Trustee, Mr. Prashant Mehta,” the Trust said in a statement.

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

The Trust accused Jagdishan of undertaking a “coordinated campaign to malign its reputation and obstruct its operations as a public charitable institution”.

Lilavati Trust files criminal lawsuit against HDFC Bank CEO

In addition to the ₹1,000 crore defamation suit, the Lilavati Trust has also filed a criminal complaint before the Metropolitan Magistrate of Girgaon, Maharashtra.

The magistrate has issued a notice to HDFC Bank CEO Sashidhar Jagdishan, its spokesperson, and the corporate communication head.

The Trust said that the criminal complaint and subsequent notice mark “a significant step in holding the HDFC CEO accountable for what the Trust alleges is a deliberate and sustained smear campaign”.

The Lilavati Trust said its actions were not retaliatory, “but are in response to a sustained effort to discredit a respected charitable institution and its founding family without any supporting documentation or conclusive evidence from HDFC Bank to validate its claims”.

Denying HDFC Bank's allegations, it said, “The Trust and Prashant Mehta are not connected to the affairs of Splendour Gems in any manner whatsoever as fraudulently espoused by the CEO of HDFC.”

Sashidhar Jagdishan moves Bombay HC

Earlier this week, HDFC Bank CEO Sashidhar Jagdishan moved the Bombay High Court, seeking the quashing of an FIR filed by the Lilavati Trust.

The FIR stems from a magistrate court's order, directing the police to investigate the charges of alleged financial fraud.

The Lilavati Trust has alleged in the complaint that of the ₹14.42 crore misappropriated by its trustees, ₹2.05 crore was received by Jagdishan. It also claimed that the offer of ₹1.5 crore disguised as Corporate Social Responsibility (CSR) funds to hospital staff shows the intent to destroy evidence and obstruct justice.