HDFC Bank CEO Sashidhar Jagdishan Files Petition to Cancel FIR Against Him

Sashidhar Jagdishan, the Managing Director and CEO of HDFC Bank, has filed petition in the Bombay High Court asking to cancel a First Information Report (FIR) filed against him. This FIR was registered by the Lilavati Kirtilal Mehta Medical Trust, which runs Lilavati Hospital in Mumbai. The Trust has accused him of being involved in a financial fraud.

What Is the Allegation?

According to the Trust’s complaint:

• Jagdishan accepted ₹2.05 crore from people connected to the Chetan Mehta Group.
• In return, he allegedly helped them retain control over the Lilavati Trust, which governs the hospital.
• The Trust claims this money was for strategic and financial advice that would help influence or manipulate how the Trust operates.
• The Trust calls this an abuse of power by the CEO of HDFC Bank.

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Other Allegations by the Trust

1. Free Medical Treatment Allegation:
   • Jagdishan and his family allegedly received free medical services at Lilavati Hospital.
   • The Trust says this was not officially recorded or acknowledged by the bank.
2. Conflict of Interest:
   • The Trust claims it has invested ₹48 crore in HDFC Bank since 2022.
   • They suggest this might be a conflict of interest, as the CEO is accused of helping one group retain control.
3. CSR Funds Misuse?:
   • The Trust says ₹1.5 crore was offered to hospital staff under the name of Corporate Social Responsibility (CSR).
   • They allege this was an attempt to influence internal decisions of the hospital.

What Happened in Court?

The case was listed before Justice AS Gadkari and Justice Rajesh Patil in the Bombay High Court. However, both judges stepped away from the case. Now, a new bench will handle it in the future.

Senior Advocate Amit Desai, appearing for Jagdishan, denied all accusations. He called the FIR “absurd,” saying it’s unbelievable to claim that Jagdishan took ₹2 crore from trustees. He argued that the FIR was filed as revenge, because HDFC Bank had started loan recovery action against Splendour Gems Limited, a company owned by the Mehta family. As of May 31, this company owes ₹65.22 crore to HDFC Bank. Desai said that before filing the FIR, the Trust had tried to complain to the Finance Ministry, RBI, and Anti-Corruption Bureau, but got no response. So, they used the Trust’s name to take action through an FIR.

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Bank vs Trust: Loan Dispute

• On June 8, HDFC Bank made an official statement, saying the Mehta family was trying to stop the bank’s loan recovery efforts.
• The bank claimed the Mehta family was using the Lilavati Trust to protect themselves.

But on June 11, the Lilavati Trust and its trustee Prashant Mehta replied:

• They denied taking any loan from the bank.
• They said the bank has not provided any proper loan documents like agreements or loan ledgers in court.
• The Trust pointed out that HDFC Bank had quoted different loan amounts in different places — ₹4.8 crore, ₹65.22 crore, and even ₹450 crore.
• They argue these inconsistencies raise questions about the bank’s claims.
• Prashant Mehta said: “If there was a real loan, the bank should easily show a clear agreement and official documents.”

This case is a serious legal battle between a leading bank’s CEO and a well-known hospital trust. The Trust accuses Jagdishan of financial fraud and abuse of position, while HDFC Bank defends him, saying the accusations are false and are meant to disrupt loan recovery from a company connected to the Trust.

The final decision will depend on further hearings in court, where both sides will need to provide proof to support their claims.

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