Mehta Family Files FIR Against HDFC Bank CEO Amid Lilavati Trust Fraud Allegations
In a significant development that could stir up India’s financial sector, the Mehta family has filed an FIR against HDFC Bank’s CEO and MD, Sashidhar Jagdishan, on Sunday, June 8, 2025. The complaint follows serious allegations of financial fraud and corruption linked to the Lilavati Kirtilal Mehta Medical Trust, which owns and operates the prominent Lilavati Hospital in Mumbai.
Background: Lilavati Trust’s Serious Allegations
The Lilavati Trust, controlled by the Mehta family, recently called upon key financial regulators—including the RBI, SEBI, and the Finance Ministry—to suspend Sashidhar Jagdishan from all executive and board positions. According to the Trust, Jagdishan, along with eight others including former bank officials, was allegedly involved in the misappropriation of trust funds and fraudulent financial activities.
The FIR and Its Context
According to a formal exchange filing, the Mehta family initiated legal action after prolonged disputes with HDFC Bank. The bank, in its defense, described the FIR as “frivolous, malicious, and baseless”, asserting that it is part of a targeted campaign by individuals attempting to derail legitimate recovery efforts.
The controversy originates from a long-standing loan default case involving Splendour Gems Ltd—an entity owned by the Mehta family. The company had defaulted on loans sanctioned in 1995, and a Debt Recovery Tribunal (DRT) order from 2004 had already issued a recovery certificate against it. HDFC Bank emphasized that the dues remain “substantially unpaid”, despite all legal routes being exhausted.
HDFC Bank’s Response and Legal Strategy
In a sharp rebuttal, HDFC Bank stated that the FIR was a deliberate attempt to intimidate the bank and its officials. The bank said:
“Having exhausted all legal avenues without success, these individuals have now resorted to launching personal attacks against HDFC Bank and its MD & CEO in a clear attempt to malign their reputation and intimidate HDFC Bank into halting its recovery actions.”
The private lender reiterated its commitment to pursuing all lawful avenues to recover public funds and to protect the integrity of its employees and leadership.
Market Impact: Investor Sentiment on Watch
Following the unfolding controversy, HDFC Bank shares are expected to remain under close watch by investors and analysts. Notably, the stock closed 1.42% higher at ₹1,978.70 on Friday, up from ₹1,950.90 in the previous session, ahead of the news breaking.
Market analysts suggest that while short-term volatility may persist, the long-term impact will depend on the legal proceedings and the bank’s ability to defend its leadership and reputation.
Disclaimer:
This article is for informational and educational purposes only. The views expressed are those of independent analysts and do not constitute financial advice. Investors are strongly advised to consult certified professionals before making any investment decisions.
Shriram Finance: The Next Big NBFC Bet? 4 Reasons Why Motilal Oswal Sees ₹800 Target