HDFC Bank rejects allegations of Lilavati Trust against its CEO terming it baseless, malicious

HDFC Bank has denied Lilavati Trust's allegation that the bank's MD and CEO Sashidhar Jagdishan was involved in a series of financial frauds.

The allegation levelled by Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), its trustees and officials against the bank's MD and CEO are baseless and malicious, an HDFC Bank's spokesperson said.

"The outrageous and preposterous allegations are strongly and categorically denied," the spokesperson said in a statement.

The Trust, which oversees Lilavati Hospital in Mumbai, 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 alleged.

According to the HDFC Bank spokesperson, Jagdishan is being targeted by unscrupulous persons who are abusing the legal process to thwart the recovery of the long outstanding loan due to the bank from recalcitrant defaulters.

"The Trustee, Prashant Mehta and his family members owe substantial amounts to HDFC Bank which were never repaid. Recovery and enforcement actions have been taken by the bank over two decades and at every stage Prashant Mehta and his other family members have launched numerous vexatious legal actions," the statement said.

Having consistently failed at all levels including the Supreme Court, they have now resorted to the recent mala fide personal attacks on the bank's MD & CEO with the sole objective of intimidating and bullying the bank from carrying out the mandate of recovering all outstanding loans in every possible manner permissible under law, it added.

Additionally, the Trust has sought a bar on Jagdishan from holding office in any SEBI-regulated entity while investigations are ongoing.

The Trust also alleged that the offer of ₹1.5 crore disguised as CSR funds to hospital staff shows the intent to destroy evidence and obstruct justice.

Despite judicial findings and multiple complaints, HDFC Bank failed to act, violating Section 166 of the Companies Act and SEBI governance mandates, the Trust alleged.