Glancy Prongay Wolke & Rotter LLP, Howard Smith, and Frank Cruz have opened preliminary investigations into HDFC Bank over potential violations of US securities law.
The probes stem from allegations that the bank disguised roughly ₹45 crore in commission payments to MSRDC, a Maharashtra state agency, as marketing expenses to secure large corporate deposits.
HDFC Bank has denied the allegations, stating its internal governance is sound.
The legal interest traces to HDFC Bank's American Depositary Receipts listed on the NYSE. US securities law requires full transparency on material operational risks for ADR issuers, and a drop in ADR prices tied to governance allegations typically triggers class-action firms to investigate whether investors were misled.
The scrutiny coincides with HDFC Bank's board delaying submission of CEO Sashidhar Jagdishan's reappointment proposal to the RBI, pending completion of an internal review by independent directors.
