HDFC Bank CEO under financial fraud lens

Sashidhar Jagdishan, the Managing Director and Chief Executive Officer of HDFC Bank, is under investigation after an FIR was filed against him in connection with a financial fraud case.

Lilavati Kirtilal Mehta Medical (LKKM) Trust filed the complaint, which runs the well-known Lilavati Hospital in Mumbai. The Trust has accused Jagdishan of receiving money in a matter that it claims was aimed at troubling the family of one of its current members.

The FIR was registered following a May 30 order from the Mumbai Magistrate Court, which directed the Bandra police to act on the complaint and file a formal case against Jagdishan and seven others. According to the Trust, a former member allegedly paid Jagdishan Rs 2.05 crore. The Trust claims to have provided handwritten diary entries as proof of this payment.

The allegations say that this money was taken to support actions that were meant to harass the father of a current member of the Trust. As part of the complaint, the Trust has demanded strict action against the HDFC Bank chief.

In response to the FIR, HDFC Bank has defended its CEO. The bank issued a statement calling the charges “baseless and malicious”. It said that Prashant Mehta, one of the Trust’s current trustees, and his family members owe a large amount of money to the bank. These dues, according to the bank, have not been cleared yet.

The bank also said it has taken legal advice and will fight the claims to protect its CEO’s name and position. “The Bank takes immense pride in the integrity and leadership of its MD & CEO,” the statement added.