Latest news with #Jagdishan
New Indian Express
34 minutes ago
- Business
- New Indian Express
HDFC Bank denies fraud allegations by Lilavati Trust; calls them smear campaign to avoid loan repayment
HDFC Bank has issued a strong rebuttal against allegations of financial fraud targeting the bank and its CEO, Sashidhar Jagdishan. In a statement on Sunday, the bank asserted these accusations are part of a campaign by "unscrupulous persons" abusing the legal system to obstruct the recovery of a long-standing loan from defaulters, specifically Splendour Gems Limited (formerly Beautiful Diamonds Limited). The allegations stem from a complaint by the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust). The trust accuses Jagdishan of accepting a significant sum to harass the father of a trust member, presenting handwritten diary entries as purported evidence. The trust seeks punitive action against the CEO, including suspension and prosecution. HDFC Bank firmly denies all accusations, labeling them "completely false, outrageous, malicious, and baseless." It links the complaint directly to its efforts to recover dues from Splendour Gems, owned by the Mehta family. According to the bank, Splendour Gems defaulted in 2001 on loan facilities granted in 1995 by an HDFC-led consortium. Despite a 2004 Debt Recovery Tribunal certificate and subsequent enforcement actions, the bank says, the outstanding amount owed to HDFC Bank alone, including interest, stood at approximately ₹65.22 crore as of May 31, 2025. The bank states that members of the Mehta family have repeatedly initiated legal actions (criminal complaints, minority rights petitions, regulatory representations) against HDFC Bank and its officials. These actions, it claims, have been dismissed or are under challenge. The latest trust complaint is seen as another retaliatory move with "mala fide intention" solely aimed at evading repayment. HDFC Bank sees this as a deliberate escalation to personal attacks against Jagdishan, designed to "malign reputation," "intimidate" the bank, and create a "calculated distraction" from their liabilities after exhausting legal avenues. The bank strongly condemned the allegations as a "gross misuse of the legal process" and reiterated its commitment to high corporate governance standards. it highlighted its "robust internal controls and compliance mechanisms," and emphasised that its governance framework ensures "transparency, accountability, and ethical conduct." HDFC Bank has said that it will "pursue all lawful remedies" to recover the funds and defend the reputation of the bank, its directors, and employees. The LKMM Trust has also levelled charges against eight individuals, including former office bearers, for alleged embezzlement. These broader charges include financial fraud, criminal conspiracy, abuse of fiduciary position, evidence tampering, and obstruction of justice, based on a recent court order and FIR.
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Business Standard
11 hours ago
- Business
- Business Standard
Lilavati Trust's allegations against MD & CEO Jagdishan baseless: HDFC Bank
After the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), which runs Mumbai's Lilavati Hospital, on Saturday called for 'immediate suspension and prosecution' of HDFC Bank managing director (MD) & chief executive officer (CEO) Sashidhar Jagdishan, alleging his direct involvement in serious financial fraud, criminal conspiracy, evidence tampering etc, India's most valuable bank said the allegations made by the LKMM Trust against its MD & CEO are 'baseless' and 'malicious'. 'The outrageous and preposterous allegations are strongly and categorically denied,' said a HDFC Bank spokesperson, adding that their MD & CEO is being targeted by unscrupulous persons who are abusing the legal process to thwart the recovery of the long outstanding loan due to the Bank from recalcitrant defaulters. LKMM Trust members said they were seeking actions against Jagdishan on the basis of orders of the Metropolitan Magistrate's court in Bandra passed on May 30 and a resultant FIR (No. 818/2025) filed by the Bandra police station. Business Standard has reviewed a copy of the first information report (FIR) and the Bandra Metropolitan Magistrate court order. According to the order, the Bandra police station was asked to file an FIR against Jagdishan and seven others in the case. LKMM claimed that apart from Jagdishan other alleged perpetrators include one Chetan Mehta, along with Rashmi and Niket Mehta and four other accused in the said criminal case. The Trust alleges that Jagdishan received Rs 2.05 crore in unaccounted cash from former trustees of the hospital for the sole purpose of harassing the father of one of the current members of the Trust. The petitioners have alleged that the transaction was recorded in a hand written diary which was recovered by the current members. The Magistrate court sought for any more evidence available in the matter. To this, the LKMM members have said that erstwhile members had likely destroyed all evidence in the matter. It claims this payment forms part of a wider pattern of misconduct involving misuse of charitable funds, preferential treatment, and suppression of internal complaints. The FIR invokes several sections of the Indian Penal Code, including those related to criminal breach of trust and conspiracy. The Trust has also alleged that a Rs 1.5 crore offer was made to hospital staff under the pretext of CSR funding, which it claims was aimed at influencing internal processes. According to the Trust, the alleged payment was made during a period when it says a group of former trustees held unauthorised control of the hospital and its finances. The Trust has further alleged that Jagdishan's involvement helped facilitate this group's actions. The current FIR is among several filed in connection with the LKMM Trust's operations. The Trust has pointed to three earlier FIRs as part of what it describes as a broader pattern of financial irregularities. These include FIR No. 972/2024, which pertains to the alleged misappropriation of Rs 11.52 crore; FIR No. 1916/2024, involving claims of Rs 85 crore being siphoned off under the guise of legal fees; and FIR No. 375/2025, related to the alleged unauthorised procurement of medical and pharmacy equipment valued at Rs 1,243 crore. All three cases are currently under investigation. In its public statement, the Trust has urged the Reserve Bank of India (RBI), the Securities and Exchange Board of India (Sebi), and the Ministry of Finance to take immediate action. It has called for the suspension of Jagdishan from all executive and board positions, a forensic audit of all transactions between HDFC Bank and the Trust, and the disclosure of any legal expenses incurred by the Bank in his defence. Additionally, the Trust has sought a bar on Jagdishan from holding office in any SEBI-regulated entity while investigations are ongoing. The Trust maintains that the current board's actions are aimed at restoring financial transparency and that its complaint is not part of a personal dispute but a larger issue of public accountability. 'The Trustee, Prashant Mehta and his family members owe substantial amounts to HDFC Bank which were never repaid. Recovery and enforcement actions have been taken by the Bank over two decades and at every stage Prashant Mehta and his other family members have launched numerous vexatious legal actions,' HDFC Bank's spokesperson said. 'Having consistently failed at all levels including the Hon'ble Supreme Court, they have now resorted to the recent mala fide personal attacks on the Bank's MD & CEO with the sole objective of intimidating and bullying the Bank and its MD & CEO from carrying out the mandate of recovering all outstanding loans in every possible manner permissible under law,' the spokesperson further said, adding that the Bank has obtained comprehensive legal advice and representation in this regard and is committed to pursuing legal remedies and options to defend its MD & CEO's reputation. 'The Bank is confident that our judicial process will recognise the fraudulent intention and devious objectives of the Trustee and officials of Lilavati Trust of tarnishing the image of the Bank and its MD and CEO,' the spokesperson said, adding that the the Bank takes immense pride in the integrity and leadership of its MD & CEO. Lilavati Hospital was built by Kishor Mehta in 1997 and later his brother Vijay Mehta's family members were slowly inducted into the board of trustees. The LKMM Trust is a registered charitable institution with a long-standing presence in Mumbai's healthcare sector. It claims to spend crores annually on subsidised or free treatment, including for victims of terror attacks and army personnel injured in combat operations. The tussle between the old and new members of LKMM Trust is not new. These two factions have been having a tussle surrounding forgery and other irregularities. Both Kishor and Vijay Mehta have now passed away. Earlier in March, Lilavati Hospital's executive director Param Bir Singh and Kishor Mehta's son Prashant Mehta held a press conference to talk about the findings of a forensic audit into the workings of the Trust. They alleged of Rs 1,200-1,500 crore fund diversion by the former trustee's family apart from unsettling claims of alleged black magic rituals within the hospital premises. Investigations into these former complaints are ongoing.
Time of India
12 hours ago
- Business
- Time of India
HDFC Bank to take legal action after fraud allegations against CEO Sashidhar Jagdishan
HDFC Bank said on Saturday it will pursue legal remedies in response to allegations made by the Lilavati Kirtilal Mehta Medical (LKMM) Trust, which has called on financial sector regulators to suspend and prosecute the bank's Managing Director and CEO, Sashidhar Jagdishan , in connection with an alleged financial fraud. In a statement, the bank said it has obtained comprehensive legal advice and representation in this matter and is committed to exploring all available legal options to defend the reputation of its MD & CEO. The bank added that it takes immense pride in the integrity and leadership of its MD & CEO. According to media reports, the Lilavati Trust has alleged that one of its former members paid Jagdishan Rs 2.05 crore with the purported intent of harassing the father of a current Trust member. In its response, HDFC Bank strongly rejected the claims, stating that its MD & CEO is being targeted by unscrupulous individuals abusing the legal system to obstruct the recovery of a long-standing loan from wilful defaulters. The bank stated that the allegations made by the Lilavati Trust, its trustees, and officials are baseless and malicious, and categorically denied what it called outrageous and preposterous accusations. The Trust, in its own statement issued Saturday, said its actions were based on a May 30 order from the Mumbai Magistrate Court , which directed the Bandra police to file a First Information Report (FIR) against Jagdishan and seven others. In its response, HDFC Bank claimed that one of the Trust's trustees, Prashant Mehta, along with his family members, owes significant sums to the bank which remain unpaid. The bank said it has been pursuing recovery and enforcement actions for over two decades. At every stage, HDFC Bank said, Prashant Mehta and his family have launched multiple vexatious legal actions to delay recovery. Having failed consistently, including at the level of the Hon'ble Supreme Court, they have now resorted to personal attacks on the bank's MD & CEO in a clear attempt to intimidate and deflect. HDFC Bank expressed full confidence in the judicial process and said it believes the courts will recognise the alleged misuse of legal proceedings and the intention to malign the bank's leadership.
Indian Express
15 hours ago
- Business
- Indian Express
Lilavati Trust alleges fraud against HDFC Bank CEO, bank calls it ‘malicious'
In an unexpected development, reportedly linked to loan defaults, the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust)—which oversees a prominent healthcare institution in Mumbai—on Saturday called for the immediate suspension and prosecution of HDFC Bank Managing Director and CEO, Sashidhar Jagdishan, accusing him of involvement in a series of financial frauds concerning the Trust. Responding late in the evening, an HDFC Bank spokesperson strongly denied the allegations made by the Trust, its trustees, and officials, dismissing them as 'baseless and malicious'. 'The Trustee, Prashant Mehta and his family members owe substantial amounts to HDFC Bank which were never repaid,' the bank spokesperson said. 'The Trust calls upon the board of HDFC Bank, the RBI, SEBI and the Finance Ministry to suspend Jagdishan from all executive and board roles with immediate effect,' the Trust said in a statement earlier in the day. 'FIR No. 818/2025 was registered under orders of the Bombay Magistrate Court after a seized cash diary revealed Rs 14.42 crore misappropriated by trustees, of which Rs 2.05 crore was received by Jagdishan — establishing his direct involvement,' the Trust alleged in a statement. There are seven other accused in the said case. According to the bank spokesperson, Jagdishan is being targeted by unscrupulous persons who are abusing the legal process to thwart the recovery of the long outstanding loan due to the bank from recalcitrant defaulters. 'The outrageous and preposterous allegations are strongly and categorically denied,' he said. Recovery and enforcement actions have been taken by the bank over two decades and at every stage Prashant Mehta and his other family members have launched numerous vexatious legal actions, bank spokesperson said. 'Having consistently failed at all levels including the Supreme Court, they have now resorted to the recent mala fide personal attacks on the Bank's MD & CEO with the sole objective of intimidating and bullying the bank and its MD & CEO from carrying out the mandate of recovering all outstanding loans in every possible manner permissible under law,' the bank spokesperson said. He said the bank has obtained comprehensive legal advice and representation in this regard and it is committed to pursuing legal remedies and options to defend its MD & CEO's reputation. 'The bank takes immense pride in the integrity and leadership of its MD & CEO,' the spokesperson said. Citing violation of the RBI's 'Fit and Proper' criteria, the Trust alleged that active criminal allegations of conspiracy, corruption, and breach of trust disqualify him from continuing as CEO under the RBI norms. 'His continued position poses a serious risk of evidence tampering, institutional interference, and intimidation of witnesses,' it alleged. 'The offer of Rs 1.5 crore disguised as CSR funds to hospital staff shows intent to destroy evidence and obstruct justice,' the Trust alleged. Despite judicial findings and multiple complaints, HDFC Bank failed to act, violating Section 166 of the Companies Act and SEBI governance mandates, the Trust alleged. The conflict between the old and new members of the LKMM Trust has been ongoing for years. In 2023, following a prolonged legal battle, control of the trust was awarded to the family of Kishore Mehta, prevailing over the family of Vijay Mehta. Lilavati Hospital, established in 1997 by Kishore Mehta, gradually saw members of Vijay Mehta's family brought onto the board of trustees over time. However, controversy arose in 2002–03 when it was alleged that Vijay Mehta's family had forged board members' signatures to seize control of the trust while Kishore Mehta was receiving medical treatment abroad. Both Kishore and Vijay Mehta have since passed away. 'This is not a private feud or a commercial misunderstanding. This is a deeply rooted criminal betrayal of fiduciary obligations, charity law, public money, and the rule of law. Sashidhar Jagdishan has abused his institutional position not only to suppress truth but to subvert justice. We seek his immediate removal to restore faith in India's banking and legal systems,' alleged Prashant Kishor Mehta, Permanent Trustee of LKMM Trust. Earlier this year, the trustees of Mumbai's Lilavati Hospital filed complaints of fraud against seven former trustees and 10 others alleging financial irregularities to the tune of Rs 1,250 crore over the past two decades. A case under sections of the law including cheating, forgery, and criminal breach of trust was registered on March 6. This was the third FIR registered on the allegations since June last year
