The Supreme Court of India has issued notices to the CBI and Mumbai Police asking for their responses to a plea filed by the Lilavati Kirtilal Mehta Medical Trust against HDFC Bank MD & CEO Sashidhar Jagdishan. The Trust alleges that the bank chief colluded with former hospital trustees, resulting in illegal payments of ₹2.05 crore to influence governance.
Just weeks before the Supreme Court intervention, the Bombay High Court quashed the FIR against Jagdishan. The bench criticized the complaint as a "personal vendetta" and noted that the case appeared to stem from a retaliatory "fallout" triggered when HDFC Bank initiated recovery proceedings against the Trust for unpaid dues exceeding ₹65 crore.
HDFC Bank and its leadership have denied all allegations, asserting that the bank is being drawn into an internal family dispute among hospital trustees purely because it exercised its legitimate right to pursue loan recovery. The bank maintains it is an unwilling party caught in a governance conflict unrelated to banking operations.
While hearing the Trust's appeal, the Supreme Court bench signaled it is not inclined to overturn the Bombay High Court's decision to quash the FIR. However, the bench flagged that specific allegations regarding "personal benefits" warrant closer scrutiny, prompting the court to seek detailed responses from investigating agencies and the CEO.
The next hearing is expected after the court's summer vacation. Legal observers view this case as significant for clarifying how executive accountability intersects with institutional loan recovery efforts in Indian banking.
