After being named in the Lilavati Kirtial Mehta Medical Trust case, HDFC Bank's managing director and CEO Sashidar Jagdishan, is now facing financial misconduct allegations along with misappropriation of funds from a Nagpur trader.
A high-net-worth individual has filed a complaint with the Nagpur branch of the Economic Offences Wing (EOW), alleging misselling of additional tier-1 (AT-1) bonds of Credit Suisse. The FIR names four HDFC Bank officials, including the CEO, as per MoneyControl reports.
One of the investors, Narendra Singru, who works as a Senior Advisor at the Asian Development Bank, has filed the complaint. He is being represented by the law firm AK and Partners, which may also represent other affected investors in the same case. Sources told MoneyControl that more complaints might be filed in Chandigarh and Gurugram in the coming days.
Besides Singru, there are investors too who claimed that they have lost money. These include Ashutosh Tiwary (CEO of MTN Guinea Bissau), Pankaj Sinha (senior director at Coca Cola), and Varun Mahajan (founder and director of GARAVA Investment & Consulting).
Together, these four investors claimed that they have invested nearly ₹20–25 crore in Credit Suisse’s AT-1 bonds, which HDFC Bank allegedly sold and they were promised around 10-13% returns, the report said.
Apart from Nagpur, Khaleej Times reported that HDFC Bank is likely to be under regulatory investigation in the UAE too regarding the same issue. Investors also claimed that these bonds carry high risks but these were not explained to them properly before the sale. However, HDFC Bank has said it has not received any official notice or summons related to this matter yet.
HDFC's Involvement in LKMM Trust Case
The Lilavati Kirtilal Mehta Medical (LKMM) Trust, which runs Mumbai’s Lilavati Hospital, in June called on financial‑sector regulators, including the Reserve Bank of India (RBI), SEBI and the Ministry of Finance, to suspend and prosecute HDFC Bank’s managing director and CEO Sashidhar Jagdishan in connection with an alleged financial‑fraud case.
This dispute between the bank and the Trust is primarily a family feud between former and current trustees of Lilavati Hospital, which has now drawn HDFC Bank into the conflict.
At its core is a power struggle among members of the founding Mehta family, with allegations of significant financial misappropriation, boardroom manipulation and now the involvement of HDFC Bank’s CEO Sashidhar Jagdishan.
The Trust reportedly alleges that Jagdishan received ₹2.05 crore in unaccounted cash from former trustees to aid in harassing a current trustee’s father. This payment, they claim, is documented in a seized handwritten cash diary.
LKMM also accuses Jagdishan of facilitating the illegal deposit of ₹25 crore of the Trust’s funds into an HDFC Bank account without any board resolution, trustee approval or proper oversight. These financial actions, according to the Trust, reflect a serious breach of governance norms and raise concerns about complicity at the bank.
