Bombay High Court quashes bribery case filed by Lilavati Trust against HDFC Bank CEO Sashidhar Jagdishan

The Bombay High Court on Tuesday quashed the first information report (FIR) lodged against HDFC Bank Managing Director and CEO Sashidhar Jagdishan on a complaint by the Lilavati Kirtilal Mehta Medical Trust which runs Lilavati Hospital in Mumbai. [Sashidhar Jagdishan v. State of Maharashtra & Ors.]

A division bench of Justices MS Karnik and NR Borkar allowed Jagdishan’s plea seeking quashing of the FIR and setting aside the magistrate court’s May 29 order for a police probe.

On a request to transfer the case to Central Bureau of Investigation, the High Court observed that such a course of action would be premature.

A detailed order is awaited.

The case is linked to HDFC Bank's recovery efforts against Splendour Gems Ltd. for dues totalling ₹65.22 crore.

The complaint was lodged by the trust 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 ₹2.05 crore to Jagdishan, allegedly on the directions of Chetan Mehta.

The police registered an FIR against Jagdishan on May 31 following a magistrate’s order to take action under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by banker, public servant etc) and 420 (cheating) of the Indian Penal Code.

Senior Advocate Amit Desai, who appeared for Jagdishan, labeled the complaint as baseless and retaliatory and argued that the seized diary and selective cash records are insufficient to warrant criminal proceedings.

Jagdishan was represented by senior advocates Amit Desai and DP Singh briefed by Trilegal. Phoenix ARC was briefed by senior advocate Ravi Kadam briefed by Trilegal.

Senior advocates Devadatt Kamat and Abad Ponda briefed by Dua Associates appeared for Lilavati Mehta Medical Trust.

Kamat also appeared for the complainant Prashant Mehta.