HDFC Bank to Take Legal Action Over Allegations by Lilavati Trust
On Saturday, HDFC Bank said it will take legal steps in response to serious allegations made by the Lilavati Kirtilal Mehta Medical (LKMM) Trust. The Trust had asked financial regulators like the RBI, SEBI, and the Finance Ministry to suspend and prosecute HDFC Bank’s Managing Director and CEO, Sashidhar Jagdishan, accusing him of being involved in financial fraud.
The bank said in a statement that it has taken proper legal advice and will use all available legal options to protect the reputation of its MD & CEO. The bank also said it fully trusts the honesty and leadership of Mr. Jagdishan.
Allegations by the Trust
According to media reports, the LKMM Trust claimed that one of its former members gave Rs 2.05 crore to Mr. Jagdishan to harass the father of a current Trust member. They also said that a cash diary seized earlier showed Rs 14.42 crore was misused by some trustees, and out of that, Rs 2.05 crore went to Jagdishan. Based on this, the Mumbai Magistrate Court ordered the Bandra police on May 30 to file an FIR (FIR No. 818/2025) against Mr. Jagdishan and seven others.
The Trust also alleged that Jagdishan’s continued role as MD & CEO is a threat to the investigation and may lead to evidence tampering and witness intimidation. They claimed that Rs 1.5 crore was given under the guise of CSR funds to hospital staff to hide evidence and influence witnesses.
The Trust further accused HDFC Bank of ignoring several complaints and judicial findings and not acting on them, which they say violates Section 166 of the Companies Act and SEBI’s governance rules. They said Jagdishan no longer qualifies under the RBI’s “Fit and Proper” criteria due to active criminal allegations. Also read: Jeetendra Kapoor Sells Mumbai Property in One of the Biggest Deals of the Year.
HDFC Bank’s Response
HDFC Bank completely rejected all the allegations, calling them false, baseless, and malicious. The bank said that these claims are a new attempt by Prashant Mehta, a trustee of the LKMM Trust, and his family to avoid repaying a large loan they owe to the bank. According to the bank, the Mehta family has been defaulting on this loan for over 20 years.
The bank also said the Mehtas have filed multiple unnecessary legal cases just to delay the recovery of the loan. Even after losing in the Supreme Court, they are now attacking the CEO personally to pressure the bank. HDFC Bank said it will continue trying to recover the money legally and strongly stands by its CEO.
The bank stated that this is a case of some people misusing the legal system to protect themselves from the consequences of long-standing defaults. It said the courts will clearly see through these tactics.
Background of Trust Dispute
The LKMM Trust, which manages the famous Lilavati Hospital in Mumbai, has been facing internal disputes for many years. In 2023, after a long legal fight, control of the Trust went to the family of Kishore Mehta, defeating the family of Vijay Mehta.
Lilavati Hospital was started in 1997 by Kishore Mehta. Over time, members from Vijay Mehta’s family joined the Trust. However, in 2002–03, a controversy arose when it was alleged that Vijay Mehta’s family forged signatures to take over the Trust when Kishore Mehta was abroad for medical treatment. Both Kishore and Vijay Mehta have since passed away.
Recently, the Trust has filed several complaints of financial fraud. In March 2025, they filed an FIR against seven former trustees and 10 others, claiming irregularities worth Rs 1,250 crore over the last two decades. This is the third FIR filed since June 2024, involving cheating, forgery, and criminal breach of trust.
Prashant Kishor Mehta, a permanent trustee, said this is not just a family or business fight. He called it a serious crime involving public funds, charity law, and trust violations. He accused Sashidhar Jagdishan of misusing his role to hide the truth and demanded his immediate removal to protect India’s banking and legal system.
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