Frivolous FIR against MD & CEO: HDFC Bank issues statement

HDFC Bank condemned what it described as “malicious and baseless” allegations following a police complaint filed against its top leadership, including Managing Director and Chief Executive Sashidhar Jagdishan, by members of the Mehta family, former promoters of a long-defaulting borrower.

The complaint, lodged through the Lilavati Kirtilal Mehta Medical Trust, accuses Jagdishan and other senior officials of misconduct in connection with efforts to recover an unpaid loan. In a statement submitted to the Bombay Stock Exchange on June 9, the bank said it believes the charges are a deliberate attempt to obstruct ongoing recovery proceedings.

At the center of the dispute is a decades-old loan extended to Splendour Gems Ltd., formerly Beautiful Diamonds Ltd., a company owned by the Mehta family. According to HDFC Bank, the company defaulted on a consortium loan dating back to 1995. As of May 31, 2025, the bank said, dues including interest have swelled to approximately ₹65.22 crore.

Despite a recovery certificate issued by the Debt Recovery Tribunal in 2004, the bank says repayment has not materialized. HDFC contends that the Mehtas have instead mounted a series of retaliatory legal actions, ranging from criminal complaints to minority rights petitions—many of which have either been dismissed or are under challenge.

“This FIR is the latest in a pattern of vexatious litigation aimed at deflecting attention from their substantial liabilities,” the bank said in its statement. “Having failed in every legal forum, the individuals have now turned to personal attacks to malign the bank and its leadership.”

HDFC Bank maintained that it would continue to pursue all lawful means to recover public funds and protect the institution’s integrity. It also reiterated its commitment to corporate governance, transparency and ethical business practices.