HDFC Bank announced on Saturday that it will pursue legal remedies in response to the financial fraud allegations made by the Lilavati Kirtilal Mehta Medical (LKMM) Trust.
The Lilavati Trust, which manages a prominent healthcare institution in Mumbai, issued a statement on Saturday calling for the immediate suspension and prosecution of HDFC Bank managing director and CEO Sashidhar Jagdishan, accusing him of involvement in a series of financial frauds concerning the Trust.
The statement read, “The Trust calls upon the board of HDFC Bank, the RBI, SEBI and the Finance Ministry to suspend Jagdishan from all executive and board roles with immediate effect.” The Trust further alleged, “FIR No 818/2025 was registered under orders of the Bombay Magistrate Court after a seized cash diary revealed ₹ 14.42 crore misappropriated by trustees, of which ₹ 2.05 crore was received by Jagdishan, establishing his direct involvement.”
Seven other individuals are also accused in the case.
HDFC Bank’s Response
HDFC Bank strongly denied the allegations, asserting that its managing director and CEO are being targeted by unscrupulous individuals manipulating the legal system to obstruct the recovery of a long‑standing loan from willful defaulters.
In its statement, the bank noted that it has sought comprehensive legal counsel and representation in this case and is committed to pursuing all possible legal avenues to defend the reputation of its MD and CEO. The bank also expressed confidence in the integrity and leadership of Jagdishan.
HDFC Bank also alleged that Prashant Mehta, a trustee of the Trust, and his family owe the bank substantial unpaid amounts. The bank stated that it has been pursuing recovery and enforcement measures for over two decades.
The bank stated that Mehta and his family have initiated numerous frivolous legal actions to delay recovery efforts. After repeatedly failing, including before the Supreme Court, they have now resorted to personal attacks on the bank’s MD and CEO in an apparent attempt to intimidate and deflect.
HDFC Bank expressed full confidence in the judicial process, stating that it believes the courts will recognise the alleged misuse of legal proceedings and the intent to harm the bank’s leadership.
