Lilavati Trust’s allegations against our MD and CEO baseless and malicious: HDFC Bank

Mumbai, June 8
HDFC Bank has strongly denied allegations made by Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) which called for the suspension and prosecution of bank’s Managing Director and CEO, Sashidhar Jagdishan, in an alleged financial fraud, which the bank termed as “baseless and malicious”.

HDFC Bank said it has obtained "comprehensive legal advice and representation in this regard" and will defend its MD and CEO's reputation.

“The allegations made by Lilavati Trust, its Trustees and Officials against the Bank’s MD and CEO are baseless and malicious. The outrageous and preposterous allegations are strongly and categorically denied,” said the bank in a statement.

Lilavati Trust, which oversees a prominent healthcare institution in Mumbai, on Saturday called for the immediate suspension and prosecution of Jagdishan, accusing him of involvement in a series of financial frauds concerning the Trust.

The allegations against Jagdishan stated that one of the erstwhile members of LKMM had paid him Rs 2.05 crore, for the sole purpose of harassing the father of one of the current members of the trust. The petitioners have alleged that the transaction was recorded in a hand written diary. The diary was recovered by the current members.

An HDFC Bank spokesperson said this is a recovery case of the long outstanding loan due to the bank.

"The Trustee, Prashant Mehta and his family members owe substantial amounts to HDFC Bank which were never repaid. Recovery and enforcement actions have been taken by the Bank over two decades and at every stage Prashant Mehta and his other family members have launched numerous vexatious legal actions,” the bank spokesperson further stated.

"Having consistently failed at all levels including the Supreme Court, they have now resorted to the recent mala fide personal attacks on the Bank’s MD & CEO with the sole objective of intimidating and bullying the Bank and its MD & CEO from carrying out the mandate of recovering all outstanding loans in every possible manner permissible under law,” the spokesperson added.

"The Bank is confident that our judicial process will recognise the fraudulent intention and devious objectives of the Trustee and officials of Lilavati Trust of tarnishing the image of the Bank and its MD and CEO," the spokesperson added.