Informist, Thursday, Jul. 3, 2025

NEW DELHI – The Supreme Court on Thursday agreed to hear on Friday HDFC Bank Ltd.'s Managing Director and Chief Executive Officer Sashidhar Jagdishan's plea to quash a first information report for alleged involvement of him in fraudulent activities concerning the financials of the Lilavati Kirtilal Mehta Medical Trust. The trust runs the Lilavati Hospital in Bandra, Mumbai.

Advocate Mukul Rohatgi, appearing for Jagdishan, mentioned the matter before the apex court for urgent listing. Rohatgi said that three benches of the Bombay High Court had recused themselves from hearing the case, causing a delay in the matter. "A frivolous FIR has been lodged against the MD and the Bank, by trustees of the Lilavati hospital, who are litigating against the other group of trustees. The bank has to recover money from them. In order to twist the arm, they have lodged an FIR through the Magistrate against the MD. We went to the Bombay High Court. Three benches of the Bombay High Court recused from hearing. Now the next date is given as July 14, that is also tentative. Everyday the bank is suffering," Rohatgi submitted.

The first information report against Jagdishan and other officials of the bank was registered in May on an order from a magistrate's court at Bandra after a seized cash diary allegedly showed misappropriation of INR 144.20 million by some of the trustees. According to the first information report filed after an application by the trust, Jagdishan received INR 20.50 million as bribe to help a group of erstwhile trustees to retain illegal control over the trust.

Jagdishan has sought the setting aside of the magistrate's order that initiated the probe. Further, pending hearing of his petition, he has sought a stay on the enquiry against him and prayed there should be no coercive action, including filing of a charge sheet, failing which he will "suffer grave loss and irreparable injury".

In June, HDFC Bank had denied the allegations and said, "HDFC Bank's MD and CEO Mr. Sashidhar 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."

Further, the Lilavati Kirtilal Mehta Medical Trust has filed an INR-10-billion lawsuit against Jagdishan, accusing him of false, defamatory statements aimed at maligning the image of the trust and its permanent trustee Prashant Mehta. "The legal action aims to counter what the Trust views as a coordinated campaign to malign its reputation and obstruct its operations as a public charitable institution," the release said. The Trust runs the Lilavati Hospital in Bandra, Mumbai.

At 1104 IST, shares of HDFC Bank were trading up 0.8% at INR 2,002.70 on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

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