Lilavati Trust Files Rs.1,000 Crore Defamation Suit Against HDFC Bank CEO Sashidhar Jagdishan

The dispute between Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) and HDFC Bank MD and CEO seems not to end. The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has filed a ₹1,000 crore civil defamation lawsuit against HDFC Bank’s Managing Director and CEO, Sashidhar Jagdishan. The trust, which runs Mumbai’s renowned Lilavati Hospital, has accused him of making false and damaging statements about the organization and its permanent trustee, Prashant Mehta.

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What Are the Allegations?

According to an official statement issued by the Trust, the lawsuit was filed in response to what it describes as a “malicious and coordinated campaign” led by Sashidhar Jagdishan. The Trust alleges that this campaign aimed to tarnish its public image and interfere with its work as a charitable healthcare institution.

The Trust emphasized that the legal action is not out of revenge, but a response to a sustained effort to discredit the Trust and its founding family, especially without any concrete evidence or documents from HDFC Bank to support such claims.

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Apart from the civil suit, the Lilavati Trust has also filed a criminal complaint before the Metropolitan Magistrate in Girgaon, Maharashtra. Following the complaint, the court has sent notices to:

• Sashidhar Jagdishan (HDFC Bank CEO)
• HDFC Bank’s official spokesperson
• The Head of Corporate Communications at HDFC Bank

The Trust called these legal actions an important move to hold the bank’s leadership accountable for what they describe as a deliberate smear campaign.

The Trust also responded to allegations linking it and Prashant Mehta to Splendour Gems, a company under investigation. The Trust firmly denied any connection with the company, calling the accusation false and misleading, and accusing the HDFC CEO of making baseless claims.

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HDFC CEO Responds in Court

In response to these legal actions, HDFC Bank CEO Sashidhar Jagdishan recently approached the Bombay High Court, asking the court to quash the FIR (First Information Report) filed against him. This FIR was ordered by a lower court, directing police to investigate allegations of financial fraud.

Details of the Alleged Fraud

The Lilavati Trust has alleged that out of ₹14.42 crore misappropriated by trustees, a total of ₹2.05 crore was received by Jagdishan. It also claimed that an amount of ₹1.5 crore was disguised as CSR (Corporate Social Responsibility) funds, allegedly used to influence hospital staff and destroy evidence.

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According to the Trust, HDFC Bank did not take any internal action, despite court findings and multiple complaints. It also alleged that the bank’s inaction violated the Companies Act (Section 166) and SEBI’s corporate governance rules.

HDFC Bank, on its part, has completely denied all allegations, calling them “outrageous and preposterous.”