Mumbai, India — June 2025:
In a dramatic turn of events tied to long-standing loan disputes, the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust)—the governing body of Mumbai’s prominent Lilavati Hospital—has leveled serious fraud allegations against HDFC Bank’s Managing Director and CEO, Sashidhar Jagdishan.
In a public statement issued on Saturday, the Trust called for Jagdishan's immediate suspension and criminal prosecution, alleging his direct involvement in a financial misappropriation case linked to the Trust’s internal finances. According to the LKMM Trust, an FIR (No. 818/2025) was registered following a court-directed investigation, which uncovered a seized diary purportedly showing Rs 14.42 crore in misused funds, including Rs 2.05 crore allegedly received by Jagdishan.
HDFC Bank Reacts Swiftly, Denounces Allegations
HDFC Bank swiftly rejected the claims, describing them as “malicious, baseless, and preposterous.” A spokesperson from the bank stated that Prashant Mehta, a trustee of the LKMM Trust, and his family members have been loan defaulters for years and are now using these allegations as a pressure tactic.
“These claims are a blatant misuse of the legal process aimed at derailing ongoing recovery efforts,” said the spokesperson. “Despite years of legal attempts, including a Supreme Court verdict, the defaulting parties have failed to meet their financial obligations and are now resorting to personal attacks against our MD & CEO.”
The bank emphasized its full legal support for Jagdishan, asserting that it remains committed to protecting his integrity and reputation.
Trust Cites Regulatory Violations and CSR Misuse
The LKMM Trust has also claimed that Jagdishan’s alleged involvement violates the RBI’s ‘Fit and Proper’ guidelines for bank executives. The Trust accused him of conspiracy, corruption, and breach of trust, saying these criminal allegations disqualify him from holding an executive role in any regulated financial institution.
Additionally, the Trust accused HDFC Bank of attempting to offer Rs 1.5 crore disguised as CSR funds to hospital staff in a bid to obstruct justice—an act they claim was aimed at tampering with evidence and influencing witnesses.
Longstanding Internal Dispute Fuels Tensions
The LKMM Trust itself has been embroiled in a decades-long power struggle between the families of Kishore Mehta and Vijay Mehta, both now deceased. The conflict dates back to the early 2000s when allegations surfaced that board members’ signatures were forged to seize control of the Trust. In 2023, after extensive legal proceedings, the Bombay High Court awarded control to Kishore Mehta’s family, further intensifying hostilities.
Permanent Trustee Prashant Kishor Mehta concluded, “This is not a private matter or a commercial dispute. It is a criminal violation of public trust and institutional integrity. Jagdishan has misused his position to cover the truth and manipulate the system. His removal is necessary to restore faith in India’s financial and legal institutions.”
What Lies Ahead
With serious allegations in the public domain and a registered FIR in play, the case now places both HDFC Bank and India’s regulatory authorities under the spotlight. As the RBI, SEBI, and Finance Ministry are being called to intervene, the next steps could have major implications for corporate governance and banking ethics in the country.