Supreme Court sends HDFC Bank CEO back to High Court for relief in Lilavati Trust case

The Supreme Court on Friday refused to entertain a plea filed by HDFC Bank CEO and Managing Director Sashidhar Jagdishan 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.

A Bench of Justices PS Narasimha and R Mahadevan noted that a plea filed by Jagdishan challenging the FIR is already pending before the Bombay High Court.

Therefore, the Court asked him to pursue that plea.

"It will be improper (for us to hear the plea). The case is listed (before the High Court)," the Court said.

The Court also expressed hope that the High Court will hear the matter on July 14, the date on which it is listed.

"You come back. What’s your apprehension? We can’t hear you properly. We have noted that the case was initially listed for hearing on June 18, 20, 25 and also 26. We hope and trust that the matter will be taken up on July 14," the Court said.

Senior Advocate Mukul Rohatgi appeared for the HDFC head and argued that it was a frivolous FIR and the bank has been roped into a private dispute with the intent to ensure that the CEO is summoned to the police station.

"A frivolous FIR is lodged because of a personal dispute...The bank has been roped in a private dispute. The idea is to summon him to the police station. It is affecting my personal reputation," Rohatgi said.

"Argue all that before the High Court," the top court said.

It also noted that many judges of the High Court had recused from the matter but declined to interfere.

"We sympathise that quashing proceedings were initiated in June and bench after bench have recused. We understand that. But now that it is listed, it will be improper for us to hear," the Supreme Court Bench made it clear while disposing of the plea.

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 for hearing on July 14.

This prompted him to move the Supreme Court for relief.

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