Mumbai, 8 June 2025
The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), controlled by the Mehta family of Mumbai, has filed a First Information Report (FIR) naming HDFC Bank’s Managing Director and CEO, Sashidhar Jagdishan, over allegations of financial fraud tied to the trust.
According to the FIR, filed on 8 June following a Bandra Magistrate Court’s directive dated 30 May 2025, Jagdishan is accused of receiving ₹2.05 crore from former trust members. These funds were allegedly paid to harass the father of a serving trustee, with purported evidence in the form of a seized handwritten cash diary (business-standard.com).
The LKMM Trust also petitioned the Reserve Bank of India, SEBI, and the Finance Ministry to suspend Jagdishan, citing provisions of the RBI’s "Fit and Proper" criteria. The trust further raised concerns about possible evidence tampering and institutional interference (indianexpress.com).
🏦 HDFC Bank Responds
HDFC Bank has strongly denied the allegations, calling them “malicious and baseless.” In filings to the BSE and formal statements, the bank accused the Mehta family of using the FIR to block its long-standing loan recovery efforts against Splendour Gems Ltd — a defaulter since 2001 (livemint.com).
The bank highlighted that Splendour Gems’ dues — totalling ₹65.22 crore as of 31 May 2025 — date back to a 2004 Debt Recovery Tribunal (DRT) certificate. It claimed the Mehta family has repeatedly resorted to litigation, including actions up to the Supreme Court, to evade repayment (m.economictimes.com).
HDFC emphasized it remains committed to lawful recovery and protecting its leadership from reputational harm (business-standard.com).
📈 Market & Governance Impact
Following the filing, HDFC Bank shares closed higher at ₹1,978.70 on 6 June — a 1.42% rise — amid investor focus on the controversy ahead of Monday’s trading session (livemint.com).
Governance concerns loom large. The LKMM Trust asserts that Jagdishan's involvement disqualifies him under RBI norms, and his winding up could set a precedent regarding oversight of senior banking executives. HDFC, for its part, claims it enjoys strong legal standing and confidence in the integrity of its CEO (thestatesman.com).
🔍 What Happens Next
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Mumbai Police have begun formal investigation per the FIR.
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Regulators (RBI/SEBI/Finance Ministry) may respond to the trust’s request for action.
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HDFC Bank will pursue legal channels to safeguard its interests.
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Investors and the market will closely monitor the case’s evolution for potential reputational and financial effects.
Disclaimer: This article summarizes ongoing allegations and counterclaims, which remain subject to legal scrutiny. No final judgment has been rendered. The views expressed here are for informational purposes only and should not substitute for independent professional advice.
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