Lilavati Trust Calls For Suspension And Prosecution Of HDFC Bank CEO

The Lilavati Kirtilal Mehta Medical Trust has called on financial sector regulators to suspend and prosecute HDFC Bank MD & CEO Sashidhar Jagdishan in a case of alleged financial fraud. HDFC Bank, on its part, has denied the allegations.

In a statement on Saturday, the members of the trust said that they were seeking these actions on the basis of a court order by the Mumbai Magistrate Court and a resultant first information report filed by the Bandra police station.

According to an order passed on May 30, a copy of which was reviewed by NDTV Profit, the Bandra police station in Mumbai was asked to file an FIR against Jagdishan and seven others in the case. NDTV Profit has also reviewed a copy of the FIR.

The allegations against Jagdishan state 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.

HDFC Bank, in its reply, "strongly denied" the allegation calling it "baseless and malicious". It has further said that this is a case of "recovery of the long outstanding loan".

The Bank also strongly supported Jagdishan in its statement. "The Bank has obtained comprehensive legal advice and representation in this regard and it is committed to pursuing legal remedies and options to defend its MD & CEO’s reputation. The Bank takes immense pride in the integrity and leadership of its MD & CEO."

Meanwhile, the Magistrate court sought for any more evidence available in the matter, to which the LKMM members said that the erstwhile members had likely destroyed all evidence in the matter.

The court in its order said that the conditions necessary to file a complaint have been fulfilled. It also asked the police to investigate these allegations to prove them.

LKMM manages Mumbai’s Lilavati Hospital in Bandra.

The fight between the new and old members of LKMM Trust has been ongoing for some time. Back in 2023, after a protracted legal battle between Vijay Mehta's family and Kishore Mehta's family, the latter got charge of the trust.

While Lilavati Hospital was built in 1997 by Kishor Mehta, his brother Vijay Mehta's family members were slowly inducted into the board of trustees over years. In 2002-03, it is alleged that Vijay Mehta's family had forged signatures from board members and taken control of the trust, while Kishor Mehta was undergoing medical treatment abroad.

Both Kishor and Vijay Mehta have now passed away.

Soon after they took over, the Kishor Mehta group initiated a forensic investigation into the trust. In March 2025, Lilavati Hospital's Executive Director Param Bir Singh and Kishor Mehta's son Prashant Mehta held a press conference to talk about the findings. Singh is also former Mumbai police commissioner.

Apart from the allegations of a Rs 1,200-1,500 crore fund diversion by the former trustees' family, the forensic investigation also allegedly showed that black magic rituals were undertaken on the hospital's premises. The ex-trustees have called these allegations baseless.

Formal police complaints have been filed by the LKMM Trust in the matter and the investigation is ongoing. The fresh case against Jagdishan and others is due to an additional allegation being made by the trust.

Kishor Mehta, a diamond merchant himself, was the owner of Beautiful Diamonds Company Ltd. In 2004, the Mumbai debt recovery tribunal had held Mehta and his son Rajesh Mehta, jointly liable to pay Rs 14.74 crore to HDFC Bank, as Beautiful Diamonds had failed to repay a prior loan.

In February 2020, a recovery officer of the Mumbai debt recovery tribunal passed an order to arrest the father-son duo, restrict their foreign travel and attach their bank accounts. Kishor Mehta then appealed this decision at the Bombay High Court, which put the arrest order in abeyance.

Later in September 2024, the high court held that Kishor Mehta family's allegation that the bank was harassing them is a ploy to avoid paying any dues.

Rajesh Mehta had previously filed a case with Maharashtra's minorities commission, alleging harassment by the bank and that it was in collusion with the former trustees of Lilavati Hospital. This harassment led to the eventual death of Kishor Mehta in May 2024, it was alleged.