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The Mehta family-led Lilavati Kirtilal Mehta Medical Trust filed an FIR against HDFC Bank’s MD & CEO Sashidhar Jagdishan for bribery and fraud. The Supreme Court denied relief.
Lilavati Trust Vs HDFC Bank MD
Lilavati vs HDFC Bank MD: The ongoing conflict between Mehta family-led the Lilavati Kirtilal Mehta Medical Trust, which runs the prominent Lilavati Hospital in Mumbai and HDFC Bank’s MD & CEO Sashidhar Jagdishan has its roots back to 30 years ago. What began as a financial dispute dating back to the 1990s has now escalated into a high-profile war of allegations involving FIRs, bribery claims, and courtroom battles.
The trust has filed an FIR against the senior official of the public lender for cheating and fraud. The Supreme Court had denied Sashidhar Jagdishan any relief in connection with the case. The apex court said it hopes the Bombay High Court hears the matter on July 14.
“We are not inclined to entertain the matter. We will not apply our mind to the merits. If matter is not heard on 14th, you come back. We hope and trust that high court will take the matter up on the designated date,” said a bench, comprising justices P S Narasimha and R Mahadevan.
The Bank said the FIR, filed by Lilavati Kirtilal Medical Trust—linked to the Mehta family—is part of a pattern of retaliatory legal actions aimed at obstructing the recovery of long-standing dues from Splendour Gems Limited (formerly Beautiful Diamonds Limited).
What’s The Case Of Lilavati Trust Vs HDFC Bank MD Jagdishan?
The connection of Mehta family with HDFC Bank goes back almost 30 years ago. According to the Bank, Splendour Gems, owned by the Mehta family, had availed of loan facilities in 1995 and defaulted in 2001. Despite a recovery certificate being issued by the Hon’ble Debt Recovery Tribunal (DRT) in 2004 and several enforcement actions since, the dues remain largely unpaid. As of May 31, 2025, HDFC Bank claims an outstanding amount of approximately Rs 65.22 crore, including interest.
In the Bank’s official statement, it noted that “unscrupulous persons are abusing the legal process to thwart recovery efforts” and that the repeated complaints and petitions filed by the Mehta family have either been dismissed or are under legal challenge.
The Trust has levelled serious allegations against the bank’s CEO, Jagdishan, and eight others, accusing them of fraud and misappropriation of funds.
Key Accusations:
According to the Trust, Jagdishan allegedly accepted a bribe of Rs 2.05 crore to aid Chetan Mehta and other former trustees in maintaining illegal control over the Trust. This transaction was reportedly documented in a handwritten cash diary, which has been seized.
The Trust further claims that Jagdishan facilitated the unlawful deposit of Rs 25 crore of the Trust’s funds into an HDFC Bank account without any formal board resolution, trustee approval, or adequate oversight. These actions, as reported by the media, represent a significant breach of governance norms and suggest possible complicity within the bank.
In another accusation, the Trust stated that Rs 1.5 crore was distributed to hospital staff under the guise of CSR donations from HDFC Bank. However, it is alleged that this payment was actually a bribe intended to suppress information leaks and internal disputes over the misdeeds, according to media reports.
Timeline of Events For Lilavati Trust Vs HDFC Bank
- 1995: Splendour Gems Limited, owned by the Mehta family, avails loans from a consortium of banks led by HDFC Bank.
- 2001: Splendour Gems defaults on loan repayments, leading to recovery proceedings by HDFC Bank.
- 2004: Debts Recovery Tribunal orders Splendour Gems to repay Rs 14.74 crore with 16% interest.
- 2006–2021: Ongoing internal disputes within LKMM Trust between Kishor Mehta and Vijay Mehta families over trust governance and financial management.
- February 2022: Alleged covert appointment of Sashidhar Jagdishan as the trust’s financial advisor, claimed by the trust to be without the knowledge of permanent trustees Kishor and Charu Mehta.
- March 2022–June 2023: Trust alleges Jagdishan accepted a ₹2.05 crore bribe from former trustee Chetan Mehta and others to influence trust governance and harass Kishor Mehta.
- 2024:
- Date Unknown: Kishor Mehta, a key trustee and office-bearer of Splendour Gems, passes away. The trust attributes his death to “mental and physical distress” caused by HDFC Bank’s recovery actions.
- September 2024: Bombay High Court dismisses a related complaint by the Mehta family against HDFC Bank, supporting the bank’s recovery efforts.
- 2025:
- March 2025: LKMM Trust’s forensic investigation alleges Rs 1,250 crore in financial irregularities by former trustees, including Chetan Mehta, and claims of black magic rituals on hospital premises.
- May 30, 2025: Mumbai Magistrate Court orders Bandra police to register an FIR against Jagdishan and seven others based on the trust’s complaint alleging fraud, bribery, and criminal breach of trust.
- May 31, 2025:
- FIR filed against Jagdishan under Bharatiya Nagarik Suraksha Sanhita (BNSS) for cheating, criminal breach of trust, and related charges.
- Separate FIR filed against Chetan Mehta and others for alleged embezzlement of ₹2.25 crore.
- June 2025:
- Jagdishan approaches Bombay High Court to quash the FIR and seek protection from coercive action, calling the allegations “malicious and vindictive.”
- HDFC Bank issues a regulatory filing denying all allegations as baseless.
- June 20, 2025: LKMM Trust files a ₹1,000 crore civil defamation lawsuit and a criminal defamation complaint against Jagdishan, HDFC Bank’s spokesperson, and corporate communication head for alleged malicious statements. Notices issued by Girgaon Metropolitan Magistrate.
- July 3, 2025: Jagdishan approaches Supreme Court to challenge the FIR. Supreme Court refuses to intervene, directing him to the Bombay High Court, which has scheduled a hearing for July 14.
- July 4–9, 2025: Multiple Bombay High Court judges (Justices A.S. Gadkari, Rajesh S. Patil, Sarang V. Kotwal, Jitendra Jain, and a fourth unnamed judge) recuse themselves from hearing Jagdishan’s plea due to prior associations or conflicts of interest.
- July 11, 2025: LKMM Trust publicly alleges Jagdishan’s covert financial advisor role and unauthorized deposit of Rs 48 crore trust funds into HDFC Bank, calling for his suspension and a CBI probe.
- July 14, 2025: Bombay High Court scheduled to hear Jagdishan’s plea to quash the FIR, assigned to a new bench by the Chief Justice.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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