Lilavati Trust files FIR against HDFC Bank CEO, alleges ‘fraud’, lender says ‘evading repayment’ — what we know so far

In an escalation of allegations against one another, the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has filed an FIR against HDFC Bank CEO and MD Sashidhar Jagdishan, alleging serious “financial fraud”.

In a filing with the exchanges, India's largest private sector lender maintains that the accusations are “retaliatory in nature and have malafide intention solely at evading repayment of long-standing dues”.

Lilavati Trust vs HDFC Bank: What we know so far

• Lilavati Trust has called for the immediate suspension and prosecution of Jagdishan for alleged direct involvement in “serious financial fraud, criminal conspiracy, abuse of fiduciary position, evidence tampering, and obstruction of justice.”
• HDFC Bank in its filing said that the Mehta family, which runs the Trust, in 2001 defaulted on loan facilities granted to Splendour Gems (also owned by the family) in 1995 by a consortium.
• The lender has vowed to “continue all lawful remedies to recover the dues from the defaulter”, which amount to around ₹65.22 crore, including interest, as of May 31, 2025.

• The bank claims that the allegations are “in response to ongoing recovery proceedings” and called them “retaliatory in nature and have malafide intention solely at evading repayment of long-standing dues”.
• "HDFC Bank unequivocally “rejects and strongly condemns the malicious and baseless allegations levelled and maintains that these allegations are completely false, outrageous and constitute a gross misuse of the legal process. HDFC Bank firmly believes that these actions (by Mehta family) are a deliberate attempt to obstruct and undermine legitimate recovery proceedings related to substantial long-outstanding dues owed by Splendour Gems Limited,” the bank said in its filing on Sunday.

• On June 7, the Lilavati Trust, which runs Mumbai's Lilavati Hospital, alleged that Jagdishan and eight other individuals, including former bank employees, of financial fraud and misappropriation of the Trust's funds.
• It called upon the board of HDFC Bank, the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Finance Ministry to suspend the executive from all roles.
• “This is not a private feud or a commercial misunderstanding. This is a deeply rooted criminal betrayal of fiduciary obligations, charity law, public money, and the rule of law. Mr. Sashidhar Jagdishan has abused his institutional position not only to suppress truth but to subvert justice. We seek his immediate removal to restore faith in India's banking and legal systems,” Prashant Kishor Mehta, Permanent Trustee of LKMM Trust said in the statement.

(With inputs from ANI)