In an sudden improvement, reportedly linked to mortgage defaults, the Lilavati Kirtilal Mehta Medical Belief (LKMM Belief)—which oversees a outstanding healthcare establishment in Mumbai—on Saturday known as for the rapid suspension and prosecution of HDFC Financial institution Managing Director and CEO, Sashidhar Jagdishan, accusing him of involvement in a collection of economic frauds in regards to the Belief.
Responding late within the night, an HDFC Financial institution spokesperson strongly denied the allegations made by the Belief, its trustees, and officers, dismissing them as “baseless and malicious”. “The Trustee, Prashant Mehta and his relations owe substantial quantities to HDFC Financial institution which have been by no means repaid,” the financial institution spokesperson mentioned.
“The Belief calls upon the board of HDFC Financial institution, the RBI, SEBI and the Finance Ministry to droop Jagdishan from all government and board roles with rapid impact,” the Belief mentioned in an announcement earlier within the day. “FIR No. 818/2025 was registered underneath orders of the Bombay Justice of the Peace Courtroom after a seized money diary revealed Rs 14.42 crore misappropriated by trustees, of which Rs 2.05 crore was obtained by Jagdishan — establishing his direct involvement,” the Belief alleged in an announcement. There are seven different accused within the mentioned case.
Based on the financial institution spokesperson, Jagdishan is being focused by unscrupulous individuals who’re abusing the authorized course of to thwart the restoration of the lengthy excellent mortgage because of the financial institution from recalcitrant defaulters. “The outrageous and preposterous allegations are strongly and categorically denied,” he mentioned.
Restoration and enforcement actions have been taken by the financial institution over twenty years and at each stage Prashant Mehta and his different relations have launched quite a few vexatious authorized actions, financial institution spokesperson mentioned.
“Having persistently failed in any respect ranges together with the Supreme Courtroom, they’ve now resorted to the latest mala fide private assaults on the Financial institution’s MD & CEO with the only goal of intimidating and bullying the financial institution and its MD & CEO from finishing up the mandate of recovering all excellent loans in each potential method permissible underneath legislation,” the financial institution spokesperson mentioned.
He mentioned the financial institution has obtained complete authorized recommendation and illustration on this regard and it’s dedicated to pursuing authorized treatments and choices to defend its MD & CEO’s fame. “The financial institution takes immense satisfaction within the integrity and management of its MD & CEO,” the spokesperson mentioned.
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Citing violation of the RBI’s ‘Match and Correct’ standards, the Belief alleged that energetic felony allegations of conspiracy, corruption, and breach of belief disqualify him from persevering with as CEO underneath the RBI norms. “His continued place poses a severe danger of proof tampering, institutional interference, and intimidation of witnesses,” it alleged.
“The supply of Rs 1.5 crore disguised as CSR funds to hospital workers reveals intent to destroy proof and impede justice,” the Belief alleged. Regardless of judicial findings and a number of complaints, HDFC Financial institution didn’t act, violating Part 166 of the Firms Act and SEBI governance mandates, the Belief alleged.
The battle between the previous and new members of the LKMM Belief has been ongoing for years. In 2023, following a chronic authorized battle, management of the belief was awarded to the household of Kishore Mehta, prevailing over the household of Vijay Mehta.
Lilavati Hospital, established in 1997 by Kishore Mehta, steadily noticed members of Vijay Mehta’s household introduced onto the board of trustees over time. Nonetheless, controversy arose in 2002–03 when it was alleged that Vijay Mehta’s household had cast board members’ signatures to grab management of the belief whereas Kishore Mehta was receiving medical therapy overseas. Each Kishore and Vijay Mehta have since handed away.
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“This isn’t a non-public feud or a industrial misunderstanding. This can be a deeply rooted felony betrayal of fiduciary obligations, charity legislation, public cash, and the rule of legislation. Sashidhar Jagdishan has abused his institutional place not solely to suppress fact however to subvert justice. We search his rapid removing to revive religion in India’s banking and authorized programs,” alleged Prashant Kishor Mehta, Everlasting Trustee of LKMM Belief.
Earlier this 12 months, the trustees of Mumbai’s Lilavati Hospital filed complaints of fraud towards seven former trustees and 10 others alleging monetary irregularities to the tune of Rs 1,250 crore over the previous twenty years. A case underneath sections of the legislation together with dishonest, forgery, and felony breach of belief was registered on March 6. This was the third FIR registered on the allegations since June final 12 months