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Time of India
28 minutes ago
- Business
- Time of India
HDFC Bank shares in focus after CEO named in alleged fraud linked to Lilavati Trust
HDFC Bank shares are likely to be in focus on Monday after its Managing Director and CEO, Sashidhar Jagdishan , was named in a police complaint filed by the Mehta family through the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), which manages Mumbai's Lilavati Hospital. The complaint alleges that Jagdishan received Rs 2.05 crore from a former trustee of the LKMM Trust to harass the father of a current trustee. According to a report by NDTV Profit, the FIR was filed following a court order dated May 30 2025, directing police to investigate charges of financial fraud. The Mehta family claims that this payment is recorded in a handwritten diary, which has been submitted as evidence. They also alleged in court that other key evidence may have been destroyed by former trustees. The court found grounds for the FIR and directed authorities to proceed with the investigation. Also Read: Dixon Technologies, LIC Housing Finance among 10 mid-cap stocks analysts expect to gain up to 40% In an official statement issued on Sunday, HDFC Bank strongly denied the allegations, calling them "malicious," "baseless," and a 'gross misuse of the legal process.' 'These allegations are completely false, outrageous, and constitute a deliberate attempt to derail the bank's ongoing loan recovery efforts,' the statement said. The bank clarified that the complaint relates to an old loan recovery case involving Splendour Gems (formerly Beautiful Diamonds), a company promoted by the Mehta family. HDFC Bank stated that dues from the firm stood at Rs 65.22 crore as of May 31 2025, and a recovery certificate was issued by the Debt Recovery Tribunal (DRT) in 2004. The bank added that members of the Mehta family have filed multiple legal and criminal complaints in response to recovery proceedings. Most of these complaints, it said, have either been dismissed or are currently under legal challenge. The complaint against Jagdishan comes amid a broader dispute within the Mehta family—descendants of Kishor Mehta and Vijay Mehta—over control of the LKMM Trust. In 2023, the Kishor Mehta faction took control after a prolonged legal battle and initiated a forensic audit. According to NDTV Profit, the audit allegedly uncovered financial irregularities , including a suspected diversion of Rs 1,200–1,500 crore and unverified claims of occult practices at the hospital. Former trustees have denied all allegations. Kishor Mehta was also the promoter of Beautiful Diamonds. In 2004, the DRT had ordered Mehta and his son Rajesh Mehta to repay Rs 14.74 crore to HDFC Bank. In 2020, the tribunal ordered their arrest and imposed travel and asset restrictions, which were later put on hold by the Bombay High Court. In 2024, the High Court observed that the harassment allegations made by the Mehtas appeared to be an attempt to delay repayment. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
44 minutes ago
- Business
- Economic Times
HDFC Bank shares in focus after CEO named in alleged fraud linked to Lilavati Trust
HDFC Bank shares are likely to be in focus on Monday after its Managing Director and CEO, Sashidhar Jagdishan, was named in a police complaint filed by the Mehta family through the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), which manages Mumbai's Lilavati Hospital. ADVERTISEMENT The complaint alleges that Jagdishan received Rs 2.05 crore from a former trustee of the LKMM Trust to harass the father of a current trustee. According to a report by NDTV Profit, the FIR was filed following a court order dated May 30 2025, directing police to investigate charges of financial fraud. The Mehta family claims that this payment is recorded in a handwritten diary, which has been submitted as evidence. They also alleged in court that other key evidence may have been destroyed by former trustees. The court found grounds for the FIR and directed authorities to proceed with the investigation. Also Read: Dixon Technologies, LIC Housing Finance among 10 mid-cap stocks analysts expect to gain up to 40% In an official statement issued on Sunday, HDFC Bank strongly denied the allegations, calling them "malicious," "baseless," and a 'gross misuse of the legal process.''These allegations are completely false, outrageous, and constitute a deliberate attempt to derail the bank's ongoing loan recovery efforts,' the statement said. ADVERTISEMENT The bank clarified that the complaint relates to an old loan recovery case involving Splendour Gems (formerly Beautiful Diamonds), a company promoted by the Mehta family. HDFC Bank stated that dues from the firm stood at Rs 65.22 crore as of May 31 2025, and a recovery certificate was issued by the Debt Recovery Tribunal (DRT) in bank added that members of the Mehta family have filed multiple legal and criminal complaints in response to recovery proceedings. Most of these complaints, it said, have either been dismissed or are currently under legal challenge. ADVERTISEMENT The complaint against Jagdishan comes amid a broader dispute within the Mehta family—descendants of Kishor Mehta and Vijay Mehta—over control of the LKMM Trust. In 2023, the Kishor Mehta faction took control after a prolonged legal battle and initiated a forensic audit. According to NDTV Profit, the audit allegedly uncovered financial irregularities, including a suspected diversion of Rs 1,200–1,500 crore and unverified claims of occult practices at the hospital. Former trustees have denied all allegations. ADVERTISEMENT Kishor Mehta was also the promoter of Beautiful Diamonds. In 2004, the DRT had ordered Mehta and his son Rajesh Mehta to repay Rs 14.74 crore to HDFC Bank. In 2020, the tribunal ordered their arrest and imposed travel and asset restrictions, which were later put on hold by the Bombay High 2024, the High Court observed that the harassment allegations made by the Mehtas appeared to be an attempt to delay repayment. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
New Indian Express
9 hours 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.
Time of India
11 hours ago
- Business
- Time of India
HDFC Bank MD & CEO named in alleged fraud linked to Lilavati Trust: What are allegations?
Troubles seem to be mounting for HDFC Bank 's Managing Director and CEO Sashidhar Jagdishan, as he has been named in a first information report (FIR) filed by Mumbai Police, following a Magistrate court order. The complaint, initiated by the Lilavati Kirtilal Mehta Medical Trust (LKMMT), alleges Jagdishan received Rs 2.05 crore to harass the father of a current trustee. However, HDFC Bank has denied all charges, calling them baseless and part of a deliberate attempt to derail ongoing loan recovery efforts. What are the allegations against HDFC Bank's boss? According to a report by NDTV Profit, the FIR stems from a court order dated May 30, 2025, directing police to investigate charges of alleged financial fraud. The complaint alleges that Jagdishan received Rs 2.05 crore from a former member of the LKMM Trust. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top 32 Most Beautiful Women In The World Undo This payment was allegedly meant to harass the father of one of the current trustees. Also Read: HDFC Bank to take legal action after fraud allegations against CEO Sashidhar Jagdishan Live Events The transaction is claimed to be recorded in a handwritten diary, now submitted as evidence by the current members of the trust. The trust also claimed in court that most other evidence in the matter may have been destroyed by the previous trustees. The court found the conditions to file a complaint were satisfied and directed the police to proceed with an investigation. What Is HDFC Bank's response? In an official press release, HDFC Bank on Sunday said, 'HDFC Bank unequivocally rejects and strongly condemns the malicious and baseless allegations... These allegations are completely false, outrageous, and constitute a gross misuse of the legal process.' The Bank clarified that the complaint is linked to an old loan recovery case involving Splendour Gems Limited (earlier known as Beautiful Diamonds Limited), a firm owned by the Mehta family. HDFC Bank disclosed that the outstanding dues from the company stood at Rs 65.22 crore as of May 31, 2025, including interest. A recovery certificate for the same was issued by the Debt Recovery Tribunal (DRT) as far back as 2004. HDFC Bank said that members of the Mehta family have responded to recovery proceedings by filing multiple legal and criminal complaints against the bank and its officials. These complaints, the bank said, were either dismissed or are under challenge in appropriate forums. What is the connection between Lilavati Hospital- Mehta family dispute and HDFC Bank? The FIR and allegations come amid an ongoing dispute between two factions of the Mehta family, descendants of Kishor Mehta and Vijay Mehta, over control of the LKMM Trust, which runs Mumbai's Lilavati Hospital. As per NDTV Profit, the Kishor Mehta faction took control of the trust in 2023 after a long legal battle. After assuming control, they launched a forensic audit, which allegedly revealed financial irregularities including a diversion of Rs 1,200–1,500 crore and even unverified claims of black magic rituals at the hospital. Former trustees denied these allegations. Kishor Mehta was also the promoter of Beautiful Diamonds Ltd., the defaulter entity. In 2004, the DRT had ordered Mehta and his son Rajesh Mehta to pay Rs 14.74 crore to HDFC Bank. In February 2020, the DRT ordered arrest, travel restrictions, and asset seizures against the father-son duo. However, the Bombay High Court put the arrest order on hold. In 2024, the High Court said the harassment allegations made by the Mehtas against HDFC Bank were an attempt to delay repayment.
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Business Standard
19 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.
