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New Indian Express
a day ago
- Business
- New Indian Express
Lilavati Trust-HDFC Bank feud attracts high reputational risk amidst legal conflicts, say banking experts
CHENNAI: As the feud between the Mehta family-owned Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) and HDFC Bank intensifies, banking sector analysts believe that while the resolution will ultimately depend on the outcomes of ongoing legal proceedings, the case serves as a telling example of the challenges financial institutions face in managing reputational risks. The Medical Trust has now come forward with a fresh set of allegations against HDFC Bank CEO Sashidhar Jagdishan, including claims of bribery and forgery, and a denial of any outstanding dues to HDFC Bank. HDFC Bank on Sunday dismissed the Trust's previous allegations as 'malicious and baseless,' stating that the Mehta family, having exhausted all other options in the alleged loan default matter, is now 'launching personal attacks' on the bank and its executives in an effort to damage their reputation and pressure the bank into halting recovery efforts. Two banking analysts told The New Indian Express that the escalating feud underscores the complexities of financial disputes involving prominent institutions. The recent allegations against HDFC Bank's CEO are considered particularly serious and could have far-reaching implications. Both HDFC Bank and the LKMM Trust are now under intense public scrutiny. For HDFC Bank, accusations of harassment and fraud threaten its reputation as a leading financial institution. Meanwhile, the Trust's ongoing involvement in highly public legal battles may affect its image as a reputable healthcare provider. According to reports, the dispute dates back to a loan default by Splendour Gems Limited, a company owned by the Mehta family. The company had taken loans from HDFC Bank and a consortium of other banks in 1995, which it defaulted on in 2001. Despite a recovery certificate issued by the Debt Recovery Tribunal in 2004 and several enforcement actions since, around ₹65.22 crore remains unpaid as of May 31, 2025. On June 8, 2025, the LKMM Trust filed a First Information Report (FIR) against HDFC Bank's MD and CEO, Sashidhar Jagdishan, accusing him of financial fraud, criminal conspiracy, abuse of fiduciary duty, evidence tampering, and obstruction of justice. Among the accusations is a claim involving a ₹2.05 crore financial transaction allegedly intended to harass an elderly relative of a trustee, supported by entries in a seized cash diary. Law enforcement authorities are reportedly treating the matter seriously. In a statement issued the same day, HDFC Bank firmly rejected the allegations, reiterating that they are 'malicious and baseless.' The bank emphasized that the Mehta family is now resorting to personal attacks in an effort to derail legitimate recovery proceedings. 'The resolution of this dispute will hinge on the outcomes of ongoing legal proceedings. Both parties are expected to continue using legal avenues to assert their positions,' analysts said. They added that the case is a textbook example of the reputational risks that financial institutions face when entangled in legal battles. While HDFC Bank's strong rebuttal demonstrates its intent to defend its legal rights and uphold corporate governance standards, the public nature of the conflict may still cause reputational damage. Legal experts concur that such high-profile disputes can erode stakeholder trust and investor confidence. Managing public perception will remain a major challenge for both sides. As legal proceedings unfold, reputational risk will continue to be a critical concern for both HDFC Bank and the Lilavati Kirtilal Mehta Medical Trust, they added.
News18
a day ago
- Business
- News18
Lilavati Trust Refutes Dues To HDFC Bank; Lender Plans Legal Action: All You Need To Know
Last Updated: Lilavati Kirtilal Mehta Medical Trust on Monday, 9 June 2025, pinned a fresh set of allegations against HDFC Bank CEO; Key points to know Lilavati Trust-HDFC Bank Dispute: The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has firmly denied any outstanding dues to HDFC Bank and its MD and CEO, Sashidhar Jagdishan, stating that neither the trust nor its permanent trustee, Prashant Kishor Mehta, owes any money to the private lender. In a statement cited by PTI, LKMM Trust also clarified that it has never borrowed from HDFC Bank or had any links to Splendour Gems Ltd, the borrowing company. In a serious escalation, the trust alleged that a bribe of Rs 2.05 crore was paid to Jagdishan to help the Chetan Mehta Group remain 'illegally" in control of the trust. Notably, the trust claimed that the HDFC Bank CEO did not deny receiving this alleged bribe, according to PTI reports. The Mehta family-run trust also rejected HDFC Bank's official response, maintaining that the allegations have already been examined by judicial authorities prior to the FIR's registration.
Time of India
2 days ago
- Business
- Time of India
Lilavati Trust says no dues owed to HDFC Bank
Launching a fresh attack on HDFC Bank MD and CEO Sashidhar Jagdishan , Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) on Monday said the trust or its permanent trustee Prashant Kishor Mehta has no outstanding dues to the private bank. It has never borrowed a single rupee from the bank nor they are connected to the borrowing company ( Splendour Gems Ltd ) in question whatsoever, LKMM said in a statement. The Trust alleged that the Rs 2.05 crore bribe money paid to HDFC Bank MD and CEO Sashidhar Jagdishan to help Chetan Mehta group remain illegally in control of the LKMM Trust. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Schlechter Stuhlgang? Diese Methode funktioniert wie "auf Knopfdruck" Darmschutz Ratgeber Undo There is no denial by MD and CEO on the bribe paid and favour enjoyed by him, the statement alleged. The Trust oversees Lilavati Hospital in Mumbai . Live Events The statement further said that civil and criminal defamation proceedings have been initiated against the MD and CEO for over Rs 1,000 crore loss caused to the Trust. However, HDFC Bank on Sunday said the bank and its senior officials are 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 i.e Splendour Gems Ltd (formerly known as Beautiful Diamonds Ltd). Splendour Gems Limited, a company owned by the Mehta family, defaulted on loan facilities granted by HDFC Bank along with the other consortium banks in 1995, the bank said in a statement on Sunday. The outstanding dues towards HDFC Bank, including interest, amount to approximately Rs 65.22 crore as on May 31, 2025, it had said. Despite a recovery certificate issued by the Debts Recovery Tribunal in 2004 and subsequent enforcement actions, the dues remain unpaid. Splendour Gems Ltd also has been borrowing from other Banks/institutions, it had said. HDFC Bank will continue to pursue all lawful remedies to recover public funds and address the retaliatory actions taken by the Mehta family as well as to defend the reputation and integrity of HDFC Bank, its Directors and other employees, it had said.
Mint
2 days ago
- Business
- Mint
HDFC Bank, Mehtas, and decades of discord: Timeline Explained
The Mehta family-owned Lilavati Kirtilal Mehta Medical Trust on Monday, 9 June 2025, pinned a fresh set of allegations against HDFC Bank CEO Sashidhar Jagdishan. The Lilavati Trust allegations against the HDFC Bank CEO ranged from 'bribe money' to 'forging evidence.' This comes after HDFC Bank on Sunday called all the allegations and claims against the bank 'malicious and baseless.' The bank stated that the Mehta family has exhausted other options and is now 'launching personal attacks' against the bank and its executives to malign their reputation and pressure the lender to halt their recovery actions. 1) Loan in 1995: In the year 1995, HDFC Bank and other consortium banks granted a loan to Mehta family-owned Splendour Gems Ltd. 2) Defaulter in 2001: Splendour Gems Ltd 2001 was officially termed a loan defaulter, and HDFC Bank started seeking options to recover the public money which was issued to the company as a loan. 3) Order of 2004: The Debt Recovery Tribunal granted HDFC Bank a 'recovery certificate' in 2004, which gave the institutional lender the authority to recover the outstanding dues that remain 'substantially unpaid' by the defaulter, the bank's official statement later showed. 4) Lilavati's allegations against HDFC CEO (2025): The whole Mehtas vs HDFC Bank issue erupted when Lilavati Kirtilal Mehta Medical Trust, on Sunday, 8 June 2025, which owns Mumbai's Lilavati Hospital, claimed that HDFC Bank CEO Sashidhar Jagdishan and eight others were allegedly involved in a series of financial frauds and misappropriation of the Trust's funds. The Trust was seeking the suspension and legal prosecution of the bank's CEO over the alleged involvement in a financial fraud and fund corruption case. 5) HDFC's response to allegations: After the allegations made by the Lilavati Trust, the private bank officially refuted the claims as 'baseless and malicious', denying the company's or executive's involvement in such financial fraud affairs. 'The allegations made by Lilavati Trust, its trustees and officials against the bank's MD and CEO (managing director and chief executive officer) are baseless and malicious. The outrageous and preposterous allegations are strongly and categorically denied,' said the bank's spokesperson in an official statement on Sunday. 6) Mehta family files FIR: Later on Sunday, the Mehta family filed an FIR (First Incident Report) against the HDFC Bank CEO, Sashidhar Jagdishan, after the financial fraud allegations from Lilavati Trust. 7) HDFC refutes claims: In response to the Mehta family FIR, HDFC Bank refuted the claims and said that the defaulters were trying to launch 'personal attacks' against the bank and its executives to malign their reputation and pressure the lender to halt their recovery actions. The bank also called the FIR 'frivolous' on Sunday. 'HDFC Bank will continue to pursue all lawful remedies to recover public funds and address the retaliatory actions taken by the Mehta family as well as to defend the reputation and integrity of the Bank, its Directors and other employees,' said the bank in its statement. 8) HDFC share reaction: Despite the allegations and FIR from the Mehta family and Lilavati Group, stock market investors did not dump the stock. Shares of the private lender closed flat, or 0.01 per cent down, at ₹ 1,978.60 after Monday's market session, compared to ₹ 1,978.70 at the previous market close. 9) Fresh Lilavati Trust allegations: The Lilavati Trust on Monday, 9 June 2025, issued a list of fresh allegations against HDFC Bank and its CEO, claiming the pointers as a 'summary of misdeeds' of Chief Sashidhar Jagdishan. The allegations ranged from 'bribe money' to 'forging evidence.' The Trust alleged that the HDFC Bank CEO took ₹ 2.05 crore in bribes to help the Chetan Mehta Group remain 'illegally' in control of the family Trust. Among other major allegations, CEO Sashidhar Jagdishan was offered ₹ 1.5 crore in bribes under the alleged CSR for the destruction and forging of evidence, and a civil and criminal defamation case of ₹ 1,000 crore is claimed to have been initiated against CEO Jagdishan. The Mehta family-run trust also dismissed HDFC Bank's official response, claiming that the earlier allegations which were made towards the CEO have allegedly been scrutinised by the judicial authority before they registered an FIR. Disclaimer: All the views and claims in this story are from the Lilavati Kirtilal Mehta Medical Trust. This story does not represent LiveMint's views on the subject.
News18
2 days ago
- Business
- News18
Lilavati Trust says no dues owed to HDFC Bank
Agency: Mumbai, Jun 9 (PTI) Launching a fresh attack on HDFC Bank MD and CEO Sashidhar Jagdishan, Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) on Monday said the trust or its permanent trustee Prashant Kishor Mehta has no outstanding dues to the private bank. It has never borrowed a single rupee from the bank nor they are connected to the borrowing company (Splendour Gems Ltd) in question whatsoever, LKMM said in a statement. The Trust alleged that the Rs 2.05 crore bribe money paid to HDFC Bank MD and CEO Sashidhar Jagdishan to help Chetan Mehta group remain illegally in control of the LKMM Trust. There is no denial by MD and CEO on the bribe paid and favour enjoyed by him, the statement alleged. The Trust oversees Lilavati Hospital in Mumbai. The statement further said that civil and criminal defamation proceedings have been initiated against the MD and CEO for over Rs 1,000 crore loss caused to the Trust. However, HDFC Bank on Sunday said the bank and its senior officials are 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 i.e Splendour Gems Ltd (formerly known as Beautiful Diamonds Ltd). Splendour Gems Limited, a company owned by the Mehta family, defaulted on loan facilities granted by HDFC Bank along with the other consortium banks in 1995, the bank said in a statement on Sunday. The outstanding dues towards HDFC Bank, including interest, amount to approximately Rs 65.22 crore as on May 31, 2025, it had said. Despite a recovery certificate issued by the Debts Recovery Tribunal in 2004 and subsequent enforcement actions, the dues remain unpaid. Splendour Gems Ltd also has been borrowing from other Banks/institutions, it had said. HDFC Bank will continue to pursue all lawful remedies to recover public funds and address the retaliatory actions taken by the Mehta family as well as to defend the reputation and integrity of HDFC Bank, its Directors and other employees, it had said. PTI DP MR First Published: June 09, 2025, 23:00 IST
