HDFC Bank governance row escalates as ex-chairman rejects external review findings

HDFC Bank's board commissioned an external legal review by two major law firms to investigate ethical concerns raised by former Chairman Atanu Chakraborty upon his resignation. After three months of document review, the firms concluded there was zero recorded evidence to support his claims.

Chakraborty has now publicly rejected the entire investigation, calling it "superfluous." His objection hinges on a procedural issue: he refused to participate because the bank repeatedly declined to provide him with the official terms of reference—the document that defines what investigators can and cannot examine.

In corporate governance, terms of reference are critical. They establish the scope and boundaries of an investigation, determining which areas fall under scrutiny and which remain off-limits. Without seeing these terms, Chakraborty argues he could not assess the investigation's fairness or participate meaningfully.