- The Bombay High Court quashed the bribery case against HDFC Bank CEO Sashidhar Jagdishan.
- The complaint was deemed a counterblast to the bank’s recovery efforts for dues over Rs 65 crore.
- The court noted acrimony and distrust between past and present trustees of the Lilavati Trust.
The Bombay High Court on Tuesday quashed a bribery case against HDFC Bank MD and CEO Sashidhar Jagdishan filed by the Lilavati Kirtilal Mehta Medical Trust, calling the complaint a "counterblast" to the bank's recovery proceedings to reclaim dues of over Rs 65 crore.
A division bench of Justices M S Karnik and N R Borkar stated that financial institutions are bound to initiate proceedings for recovery of loan amounts, and observed that the complaint was a result of the acrimony and strained relations between the Trust's past and present trustees.
Lilavati Kirtilal Mehta Medical Trust runs Lilavati Hospital in Bandra.
"In our view, the complaint is nothing but a counterblast to the recovery proceedings initiated, and the materials on record do not at all justify an investigation into the claim made by the complainant," the court said.
It also refused to accept the complainant's claim that the Trust's founder, Kishore Mehta, died in 2024 because of pressure mounted by the bank and said the bank officials cannot be blamed for it.
The bench also noted that there was "serious acrimony, distrust and strained relations to the core" between the erstwhile trustees and the present trustees and the ripples of this are being felt by the bank official.
The court, while quashing the FIR, said continuance of the same would be nothing but an "abuse of the process of court" and that the same was not a bona fide complaint.
The court allowed Jagdishan's plea seeking quashing of the FIR and to set aside the magistrate court's May 2025 order calling for a police probe.
The case is linked to the HDFC Bank's recovery efforts against Splendour Gems Ltd, a company owned and managed by the Mehta family, for dues totalling Rs 65.22 crore.
The Trust lodged the complaint through its representative, Prashant Mehta.
The Trust alleged that a diary found during loan recovery proceedings involving a company linked to one of its trustees, indicated payments totalling Rs 2.05 crore to Jagdishan, allegedly on the directions of Chetan Mehta.
The police registered an FIR against Jagdishan on May 31, 2025, following a magistrate's order to take action under sections 406 (criminal breach of trust), 409 (criminal breach of trust by banker, public servant, etc.) and 420 (cheating) of the Indian Penal Code.
Jagdishan, in his plea, stated that the case was a fallout of long-standing recovery and enforcement proceedings initiated by HDFC Bank against the family of trust founders for default in repayment of dues exceeding Rs 65 crore.
The complaint alleged that Chetan Mehta and others fraudulently and illegally gained control of the Trust and, with corrupt motive, used its funds for their own gains and for personal litigation.
It accused Jagdishan of accepting Rs 2 crore bribe from Chetan Mehta for financial advice and to help him retain control over the Trust's governance.
The high court, in its order, noted that HDFC Bank was pursuing recovery proceedings against the company before the Debt Recovery Tribunal and substantial dues are yet to be recovered by it.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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