Bombay High Court Quashes Bribery Case Against HDFC Bank CEO Sashidhar Jagdishan
Bombay High Court Quashes Bribery Case Against HDFC Bank MD
The Bombay High Court on Tuesday quashed a bribery case filed against Sashidhar Jagdishan, managing director and CEO of HDFC Bank, by the Lilavati Kirtilal Mehta Medical Trust. The court found the complaint to be a "counterblast" to the bank's recovery action aimed at reclaiming dues exceeding Rs 65 crore.
A division bench of Justices M S Karnik and N R Borkar observed that financial institutions are obligated to pursue the recovery of outstanding loans. The court further noted that the complaint appeared to stem from ongoing acrimony and strained relations between the Trust's former and current trustees. The Trust operates Lilavati Hospital.
The court rejected the complainant's claim that the Trust's founder, Kishore Mehta, died in 2024 due to pressure mounted by the bank and stated that bank officials cannot be blamed for it. The bench also highlighted "serious acrimony, distrust, and strained relations to the core" between the erstwhile trustees and the present trustees, which are affecting the bank officials.
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The court quashed the FIR and set aside the magistrate court's May 2025 order calling for a police probe, allowing Jagdishan's plea to quash the FIR. The case is linked to 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, 409, and 420 of the Indian Penal Code.
The high court 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.
| Complaint Details | Amount |
|---|---|
| Total dues claimed by HDFC Bank | Rs 65 crore |
| Amount allegedly paid to Jagdishan | Rs 2.05 crore |
| Total dues claimed by HDFC Bank against Splendour Gems Ltd | Rs 65.22 crore |
Investor Takeaway
No impact on HDFC Bank's operations or financials.
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