The Mehta family filed an FIR (First Information Report) against HDFC Bank’s Managing Director and Chief Executive Officer (CEO) Sashidhar Jagdishan after the Lilavati Trust allegations on Sunday, 8 June 2025, according to an exchange filing.
According to the bank’s filing on BSE, HDFC Bank’s senior officials are currently being targeted by ‘unscrupulous persons’ who aim to abuse the legal process of recovering a long outstanding loan from a defaulter named Splendour Gems Ltd. The bank called the FIR action “malicious and baseless” on Sunday.
The private lender also said that, as 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.
“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,” said the bank.
This development comes despite the 2004 Debt Recovery Tribunal order, which issued a ‘recovery certificate’ for the dues which remain “substantially unpaid” by the defaulter.
Splendour Gems, which is owned by the Mehta family, defaulted on its loans in 2001. These loans were granted to the entity in 1995 by HDFC Bank along with other consortium banks, according to the filing.
What were the Lilavati Trust allegations?
Lilavati Kirtilal Mehta Medical Trust is owned and controlled by the Mehta family. This is the same trust which sought the HDFC Bank CEO’s suspension and prosecution over his alleged involvement in financial fraud and corruption related to the trust.
Along with the HDFC CEO Sashidhar Jagdishan, the Lilavati Trust has accused eight individuals, including former bank employees, of financial fraud and misappropriation of the trust’s funds.
What does HDFC Bank plan to do next?
The largest private institutional lender on Sunday said that it is willing to continue pursuing legal methods to recover public funds and will address the retaliatory actions taken by the Mehta family.
“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 private lender in its official statement.
HDFC Bank shares will be in focus tomorrow, Monday, 9 June 2025, to determine what investors feel about the development and the Mehta family targeting the institutional lender.
HDFC Bank shares closed 1.42 per cent higher at ₹1,978.70 after Friday’s stock market session, compared to ₹1,950.90 at the previous market close.
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