The Lilavati Kirtilal Mehta Medical (LKMM) Trust, which runs Mumbai’s Lilavati Hospital, on Saturday 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.
Refuting the claims, HDFC Bank announced that it will pursue legal remedies in response to the fraud allegations and expressed confidence in the integrity and leadership of Jagdishan.
However, the ongoing 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 Allegations
On May 30, 2025, a Bandra magistrate directed the Mumbai Police to register an FIR based on LKMM’s complaint, triggering one of the most high‑profile disputes in recent Indian corporate history.
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.
In another serious allegation, the Trust claims that ₹1.5 crore was disbursed to hospital staff under the pretext of CSR donations from HDFC Bank, which they allege was actually a bribe to suppress information leaks and internal conflict over the wrongdoing.
The complaint further states that Jagdishan and his family received preferential medical treatment and financial waivers at Lilavati Hospital in exchange for his silence regarding financial mismanagement by former trustees.
In light of these allegations, LKMM has urged regulators, including the RBI, SEBI and the Ministry of Finance, to suspend and prosecute Jagdishan immediately. The Trust demands a forensic audit of all financial transactions between HDFC Bank and the Trust, arguing that public trust in both philanthropic and financial institutions is at stake.
The Response
HDFC Bank has strongly denied all allegations, calling them “baseless,” “malicious” and “preposterous.” It asserts that these legal claims are aimed at derailing a two‑decade‑long loan recovery effort.
The bank has extended its full support to Jagdishan and is preparing legal action to defend both its leadership and institutional integrity. It has consulted legal counsel and is preparing to take appropriate legal action, which may include defamation suits and attempts to quash the FIR. The bank believes the case lacks merit and is procedurally flawed. It suggests that the FIR was obtained through manipulative tactics rather than substantive evidence.
In its response, HDFC Bank claimed that the allegations are being orchestrated by Prashant Mehta and his family, beneficiaries and former trustees of the Trust who allegedly owe significant unpaid dues to the bank.
The bank argues that the FIR is not based on genuine financial wrongdoing but is instead a legal tactic to derail legal proceedings.
Defending its CEO, the bank has publicly reaffirmed full confidence in Sashidhar Jagdishan’s leadership and integrity. It insists that Jagdishan has conducted himself with the highest ethical standards and sees no reason for his suspension. This firm backing comes amid public calls by the Trust for regulatory intervention and criminal prosecution.
The Background
The feud primarily involves current trustee Kirti Mehta and his son on one side, and former trustees Prashant Mehta and Dilip Mehta on the other. Disputes over control of the Trust have triggered years of litigation, with each side accusing the other of forgery, unauthorised decisions and fund siphoning. The conflict has gone beyond internal matters, leading to a series of criminal complaints and a forensic audit that allegedly uncover wide‑ranging financial irregularities.
The Trust has filed multiple FIRs over the past two years, accusing former trustees of misappropriating over ₹1,400 crore, including inflated legal fees, questionable procurements and the use of forged documents.
The recent FIR against Jagdishan stems from the Trust’s claim that ₹25 crore of its funds were illegally deposited into an HDFC Bank account without trustee approval and that the bank CEO personally received ₹2.05 crore in unaccounted cash and hospital benefits in return for his complicity.
