HDFC Bank Mulls Legal Action Against Lilavati Trust For 'Defamatory Allegations'
"We reiterate our unequivocal, categorical and unambiguous denial and condemnation of these egregiously malicious, false and defamatory allegations and insinuations," a statement said.
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HDFC Bank Ltd. on Wednesday said it may explore legal remedies including defamation proceedings against Lilavati Kirtilal Mehta Medical Trust for "repeated false, malicious and defamatory allegations" against MD and CEO Sashidhar Jagdishan.
"We reiterate our unequivocal, categorical and unambiguous denial and condemnation of these egregiously malicious, false and defamatory allegations and insinuations," a statement said.
"We are fully compliant with the laws of the land and follow the highest standards of governance and ethics. The content, timing and manner of allegations demonstrate the devious objective of preventing the Bank from carrying out its legal mandate of recovery and enforcement. The Bank reiterates that it has commenced the process of taking legal action permissible under law to vindicate its position," it added.
The Lilavati Trust has called for the suspension and prosecution of 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 handwritten diary. The diary was recovered by the current members.
HDFC Bank later 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," it said.
