Synopsis: HDFC Bank finds itself in the spotlight as its CEO, Sashidhar Jagdishan, is named in a police FIR over alleged financial misconduct tied to Mumbai's Lilavati Hospital. Despite the controversy, the bank's stock remained in green, showing investor faith in its stability.
HDFC Bank shares remained in the green on Monday, brushing off serious allegations against its Managing Director and CEO, Sashidhar Jagdishan, who has been named in a police complaint filed by the Mehta family, trustees of the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust).
The FIR, according to NDTV Profit, was registered following a court order on May 30, 2025, directing Mumbai Police to probe charges of financial fraud. The complaint accuses Jagdishan of accepting ?2.05 crore from a former LKMM trustee as part of an alleged conspiracy to harass a trustee's father. The complaint is backed by what the Mehta family claims is a handwritten diary, serving as key evidence. The court also noted that additional evidence was allegedly destroyed by former trustees.
In a strongly worded official statement, HDFC Bank dismissed the allegations as “baseless, malicious, and a gross misuse of the legal process,” adding that it was an attempt to sabotage its loan recovery process.
The complaint is reportedly linked to a long-standing financial dispute with Splendour Gems (formerly Beautiful Diamonds), a firm promoted by the Mehta family. The bank stated that as of May 31, 2025, the company owes ?65.22 crore, for which a Debt Recovery Tribunal (DRT) certificate had been issued back in 2004. The bank emphasized that multiple legal complaints filed by the family have either been dismissed or are under judicial review.
Despite the news, HDFC Bank’s stock price stayed firm, indicating that the market has likely factored in the context and clarification from the bank.
Disclaimer: This article is for informational purposes only. Readers are advised to consult certified financial experts before making investment decisions.
