Bombay High Court Quashes FIR Against HDFC Bank CEO Sashidhar Jagdishan, Calls Complaint Non-Genuine
The Bombay High Court has quashed the FIR filed against Sashidhar Jagdishan, Managing Director and CEO of HDFC Bank. The case was related to a bribery complaint filed by the Lilavati Kirtilal Mehta Medical Trust, which runs Lilavati Hospital in Mumbai.
The Bandra Police had registered an FIR against Shashidhar Jagdishan, the Managing Director and CEO of HDFC Bank, and seven others in a case involving allegations of cheating, criminal breach of trust, and misuse of trust funds. The case has been filed under Indian Penal Code sections 406, 409, 420, and 34, based on a complaint by Prashant Mehta, a permanent trustee of the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust).
What were the charges against the HDFC Bank MD&CEO?
Prashant Mehta mentioned following charges in his FIR:
- Bribery: The Trust claimed that Jagdishan accepted ₹2.05 crore as a bribe. In return, he allegedly gave financial advice that helped a private group (Chetan Mehta Group) keep illegal control over the hospital’s management.
- Misuse of Position: The complaint said he used his position as head of a top private bank to interfere in the internal matters of a charitable trust, which is wrong and unethical.
- Free Medical Benefits: According to the Trust, Jagdishan and his family received free medical treatment at Lilavati Hospital — a benefit that the bank had not officially denied or acknowledged.
- Conflict of Interest: The Trust said it had kept ₹48 crore in deposits and investments with HDFC Bank since 2022. This financial relationship, they claim, made Jagdishan’s actions suspicious and biased.
- CSR Fund Misuse: The complaint also claimed that Jagdishan offered ₹1.5 crore as CSR funds (Corporate Social Responsibility money). But they alleged it was actually meant to destroy or forge evidence related to the Trust’s internal disputes.
What Court said?
A bench of Justices MS Karnik and NR Borkar allowed Jagdishan’s plea and cancelled the FIR. The court also set aside the magistrate court’s May 29 order that had asked the police to investigate the matter. The court said the complaint was not genuine and called it “non-bona fide”.
The FIR was filed based on a complaint by the Trust through its trustee, Prashant Kishor Mehta. The complaint alleged that Jagdishan accepted a bribe of ₹2.05 crore to help a group led by Chetan Mehta keep control over the Trust.
The court said the complaint appeared to be a reaction to the bank’s recovery action. It added that there was no strong evidence to justify an investigation.
The court also rejected the claim that the Trust’s founder died in 2024 due to pressure from the bank. It said bank officials cannot be blamed for this.
The judges noted that there was serious conflict and mistrust between former and current trustees of the Trust. They said this internal dispute had affected the bank official.
While cancelling the FIR, the court said continuing the case would be an abuse of the legal process.
The case is linked to recovery proceedings by HDFC Bank against Splendour Gems Ltd, a company owned by the Mehta family, over dues of ₹65.22 crore.
The Trust had claimed that a diary found during recovery proceedings showed payments of ₹2.05 crore to Jagdishan, allegedly made on the instructions of Chetan Mehta.
Police had registered the FIR on May 31, 2025, under sections related to criminal breach of trust and cheating of the Indian Penal Code.
