An FIR has been registered against Sashidhar Jagdishan, Managing Director and CEO of HDFC Bank, following allegations of involvement in a financial fraud case linked to a decades-old loan default. The complaint was filed by the Mehta family through the Lilavati Kirtilal Medical Trust, accusing Jagdishan of misconduct related to a loan provided by the bank back in 1995.
Background of Allegations
The Mehta family, linked to the Lilavati Kirtilal Medical Trust that manages the Lilavati Hospital in Mumbai, has accused Jagdishan and HDFC Bank of wrongdoing in connection to the recovery of an outstanding loan. The loan, originally issued in 1995, remains unpaid despite prolonged legal and recovery proceedings. The Trust has also called for Jagdishan’s immediate suspension from all executive and board positions at HDFC Bank and requested intervention from regulators including the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the Finance Ministry.
HDFC Bank’s Strong Rebuttal
HDFC Bank has strongly denied all allegations, labeling them as “baseless and malicious.” A spokesperson for the bank stated that Jagdishan is being unfairly targeted by the Mehta family, who have used multiple legal tactics over the years to evade repayment of dues amounting to approximately ₹65.22 crore as of May 31, 2025.
The bank clarified that despite various enforcement actions, including a recovery certificate issued by the Debt Recovery Tribunal in 2004, the outstanding amount has not been settled. HDFC Bank accused the Mehta family of abusing the legal system to avoid repayment and trying to malign the reputation of the bank and its leadership.
“In response to ongoing recovery proceedings, members of the Mehta family have initiated multiple legal actions and complaints against HDFC Bank and its senior officials. These include criminal complaints, minority rights petitions, and representations to regulatory authorities—all of which have been dismissed or are under legal challenge,” the bank said in an official statement.
About Sashidhar Jagdishan
Sashidhar Jagdishan took over as the MD and CEO of HDFC Bank on October 27, 2020, succeeding Aditya Puri. His tenure was recently extended by the RBI for three more years, till October 26, 2026. Under his leadership, HDFC Bank remains one of India’s largest and most influential private-sector banks.
The allegations have put Jagdishan and the bank under scrutiny, but the institution remains firm that the accusations are part of a retaliatory campaign by defaulters attempting to disrupt recovery efforts.
Current Status
As the case unfolds, regulatory authorities and the legal system will review the complaints and counterclaims. Meanwhile, HDFC Bank continues to emphasize its commitment to recovering dues and maintaining its integrity in banking operations.
Sources By Agencies
