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HDFC Bank CEO moves Supreme Court to quash FIR registered on Lilavati Trust complaint

Counsel for the HDFC head argued that the case filed by Lilavati Trust is a frivolous one, as part of an arm-twisting tactic.

Debayan Roy

HDFC Bank CEO and Managing Director Sashidhar Jagdishan has filed a petition before the Supreme Court challenging the First Information Report (FIR) lodged against him on a complaint by the Lilavati Kirtilal Mehta Medical Trust, which owns the Lilavati Hospital in Mumbai.

The matter was mentioned this morning before a Bench of Justices MM Sundresh and Vinod Chandran.

Justice MM Sundresh and Justice K Vinod Chandran

Senior Advocate Mukul Rohatgi appeared for the HDFC head, arguing that it was a frivolous case as part of an arm-twisting tactic.

"This is by HDFC Bank and the managing director. Frivolous FIR was filed against the managing director by the trustees of Lilavati Hospital. This is because we have to recover money from them...Such arm-twisting. Three Benches of Bombay High Court could not hear it," Rohatgi told the top court.

The Court said that the matter will be listed for hearing tomorrow.

"Orders have been passed to list it tomorrow," Justice Sundresh said.

Senior Advocate Mukul Rohatgi

The FIR, registered last month by the Bandra Police Station under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant), and 420 (cheating) of the IPC, levels serious allegations against Jagdishan.

According to the complaint filed by the Trust, Jagdishan allegedly accepted a bribe of ₹2.05 crore in exchange for providing financial advice to help the Chetan Mehta Group retain illegal and undue control over the Trust’s governance. The Trust has accused Jagdishan of misusing his position as the head of a leading private bank to interfere in the internal affairs of a charitable organisation.

The complaint further claims that the money was paid to Jagdishan in exchange for financial and strategic advice to manipulate Trust affairs, which is claimed to be a misuse of authority by the HDFC Bank CEO.

The Trust further claimed that Jagdishan and his family received "free medical treatment" from Lilavati Hospital, a benefit which, according to the Trust, has gone unacknowledged and unrefuted by HDFC Bank.

It also alleged that it had placed deposits and investments totaling ₹48 crore with HDFC Bank since the financial year 2022, and implied a conflict of interest in the ongoing relationship. In addition, the complaint alleges that ₹1.5 crore was offered by Jagdishan under the pretext of corporate social responsibility (CSR) funds, allegedly to facilitate the destruction and forgery of evidence relating to internal Trust disputes.

Jagadishan had earlier approached the Bombay High Court to quash the case. However, three High Court judges eventually recused from hearing the matter.

The matter was mentioned before the High Court on June 30, when Jagdishan's counsel pressed for interim relief. However, noting that there is no urgency in the matter, the High Court listed the matter on July 14. This prompted him to move the Supreme Court for relief.

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