HDFC Bank says co owned by Lilavati Trust's Mehta family owes INR 652 mln
This story was originally published at 08:46 IST on 9 June 2025
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MUMBAI – HDFC Bank Sunday said a company owned by the Mehta family of the Lilavati Kirtilal Medical Trust owed the bank INR 652.2 million as on May 31. The lender said it would continue to pursue all "lawful remedies" to recover public funds and address the retaliatory actions taken by the Mehta family.
On Saturday, the Lilavati Kirtilal Mehta Medical Trust called for immediate suspension and prosecution of HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan, citing violation of certain norms of the Reserve Bank of India, and accusing him of corruption and breach of trust. A spokesperson for HDFC Bank on Saturday denied the allegations, terming them "baseless and malicious".
On Sunday, the bank said Splendour Gems Ltd., a company owned by the Mehta family, defaulted on loan facilities granted by HDFC Bank along with the other consortium banks in 1995. The outstanding dues towards HDFC Bank, including interest, amounted to about INR 652.2 million as on May 31. "Despite a recovery certificate issued by the Hon'ble Debts Recovery Tribunal in 2004 and subsequent enforcement actions, the dues remain unpaid. Splendour Gems Ltd. also has been borrowings from other banks/institutions," HDFC Bank said in an exchange filing.
The Mehta family has initiated multiple legal actions and complaints against HDFC Bank and its senior officials in response to the ongoing recovery proceedings, including criminal complaints, all of which have been dismissed or are under legal challenge, the lender said. "HDFC Bank firmly believes that these allegations are retaliatory in nature and have mala fide intention solely at evading repayment of long-standing dues," it said.
According to media reports, the Lilavati Trust has filed a first information report against Jagdishan and other bank officials under the orders of the Bombay Magistrate Court after a seized cash diary showed misappropriation of INR 144.2 million by trustees, of which Jagdishan received INR 20.5 million, establishing his direct involvement in the matter. HDFC Bank said the allegations were "completely false, outrageous and constitute a gross misuse of the legal process".
The bank said these actions were an attempt to obstruct and undermine legitimate recovery proceedings related to substantial long-outstanding dues owed by Splendour Gems. "Having exhausted all legal avenues without success, these individuals have now resorted to launching personal attacks against the Bank and its MD & CEO in a clear attempt to malign their reputation and intimidate the Bank into halting its recovery actions," the lender said. End
Reported by Shubham Rana
Edited by Avishek Dutta
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