HDFC Bank 'Strongly' Denies Allegations Against Its MD And CEO, Calls It 'Malicious'

HDFC Bank has denied allegations levied against its MD and CEO Sashidhar Jagdishan by the Lilavati Trust, its trustees and officials. In a statement released on Saturday night, the Bank stood behind Jagdishan. It said that it is "committed to pursuing legal remedies and options to defend its MD & CEO’s reputation."

The Lilavati Kirtilal Mehta Medical Trust has called for the suspension and prosecution of HDFC Bank MD & CEO Sashidhar Jagdishan in a case of alleged financial fraud.

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 has said that 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."

"Having consistently failed at all levels including the Hon’ble 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 statement says that HDFC Bank has obtained "comprehensive legal advice and representation in this regard" and will defend its MD and CEO's reputation.

"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."