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Lilavati Trust Files FIR Against HDFC Bank CEO; Bank Denies Charges

Alleging that Jagdishan took Rs 2.05 crore to harass a trustee’s father, the FIR has prompted HDFC Bank to vow a full legal defence.

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HDFC Bank on Lilavati Trust allegations against CEO: 'Malicious bid to derail loan recovery'

Overview

  • The Bombay Magistrate ordered the June 8 FIR after trust lawyers presented a seized cash diary alleging Rs 14.42 crore was misappropriated by trustees and Rs 2.05 crore went to Jagdishan.
  • HDFC Bank has labelled the charges against its MD and CEO as baseless and malicious and has secured legal advice to defend his reputation.
  • The Mehta family’s Splendour Gems defaulted on a 1995 consortium loan in 2001 and still owes about Rs 65.22 crore to HDFC Bank, which has pursued recovery for over two decades.
  • The Lilavati Trust has petitioned RBI, SEBI and the Finance Ministry to suspend Jagdishan under ‘Fit and Proper’ norms, alleging his continued leadership risks evidence tampering.
  • The controversy forms part of a long-running boardroom struggle within the Lilavati Trust over alleged embezzlement of more than Rs 1,250 crore since the early 2000s.