Mumbai: FIR Filed Against HDFC Bank CEO Sashidhar Jagdishan Over Rs 2.05 Cr Bribery Allegation

Mumbai, 7th June 2025: The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), a registered charitable institution known for its public healthcare work, has demanded the immediate suspension and prosecution of HDFC Bank’s Managing Director and CEO, Sashidhar Jagdishan, over his alleged involvement in a series of grave financial and criminal misconducts.

The Trust cited a court-directed FIR and a body of material evidence to accuse Jagdishan of criminal conspiracy, financial fraud, abuse of fiduciary position, evidence tampering, and obstruction of justice. The complaint also names Chetan Mehta as a key co-conspirator, alongside six others including Rashmi Mehta and Niket Mehta.

Court-Directed FIR Triggers Outcry

The core of the allegations stems from FIR No. 818/2025, registered on May 30, 2025, under orders from a Magistrate Court in Mumbai. The FIR, which remains undisclosed to HDFC Bank’s Board, SEBI, or investors, allegedly exposes the misappropriation of ₹14.42 crore from the charitable trust. Of this, ₹2.05 crore was purportedly paid directly to Jagdishan, according to a seized cash ledger.

Despite the seriousness of the case, LKMM Trust alleges that HDFC Bank has continued public fundraising efforts without disclosing the FIR, in violation of SEBI’s disclosure obligations and corporate governance norms.

“Coordinated Criminal Enterprise,” Says Trust

“This is not a mere governance issue—it is a case of premeditated financial crime,” said Prashant Kishor Mehta, Permanent Trustee of LKMM Trust. “Jagdishan used his office to protect ousted trustees, suppress disclosures, and obstruct justice. His continued role as CEO threatens the integrity of the financial system.”

According to the Trust, the FIR was backed by:

• Seized handwritten cash ledgers documenting illicit payments,
• Email trails showing attempts to bribe hospital staff,
• Misuse of CSR funds camouflaged as donations,
• Forged internal payment records,
• Preferential treatment extended to Jagdishan and his family at Lilavati Hospital.

Series of FIRs Point to Systemic Fraud

FIR No. 818/2025 is just one among several criminal investigations underway:

• FIR No. 972/2024: Exposes misappropriation of ₹11.52 crore from trust funds via money laundering and cheating.
• FIR No. 1916/2024: Alleges ₹85 crore embezzled under the guise of legal fees routed through shell companies.
• FIR No. 375/2025: Investigates a massive ₹1,243.09 crore fraud involving unauthorized purchases and financial manipulation.

Each FIR allegedly connects back to a common network of former trustees and enablers, with the Trust stating that Jagdishan played a pivotal role in covering up these transactions.

Harassment of Whistleblower Trustee

The Trust also linked Jagdishan to a campaign of legal harassment against 84-year-old founder trustee, Kishor Mehta, who was reportedly issued over 100 court summonses before his death. The Trust asserts that this sustained legal and psychological pressure contributed to his deteriorating health.

“Kishor Mehta was systematically targeted because he stood up for accountability. His death is not unrelated to the pressures he faced,” said Prashant Kishor Mehta.

Legal Grounds for Removal

The Trust cited multiple reasons why Jagdishan must be removed immediately:

• Violation of RBI’s ‘Fit and Proper’ Norms: Ongoing criminal allegations disqualify him from executive leadership.
• Risk of Evidence Tampering: Continued access to the institution could jeopardize ongoing investigations.
• Bribery under CSR Guise: Attempted ₹1.5 crore bribe to hospital doctors, disguised as a donation, points to willful obstruction of justice.
• Corporate Governance Breach: No disclosures were made to shareholders, SEBI, or the Bank’s Board, violating the Companies Act and SEBI’s Listing Obligations and Disclosure Requirements (LODR).

Key Demands by the Trust

The LKMM Trust has called on the following regulatory and statutory bodies to take urgent action:

• Reserve Bank of India (RBI)
• Securities and Exchange Board of India (SEBI)
• Ministry of Finance
• HDFC Bank Board of Directors

The Trust’s demands include:

• Immediate suspension of Jagdishan from all executive and board roles.
• A forensic audit of all financial interactions between HDFC Bank and LKMM Trust.
• Freezing of all assets linked to Jagdishan.
• Full public disclosure of legal expenses incurred by HDFC Bank in his defense.
• Blacklisting Jagdishan from holding any position in SEBI-regulated entities until completion of legal proceedings.
• Legal protection for whistleblowers assisting the investigation.

Institutional Implications

The controversy threatens to shake investor confidence in HDFC Bank, one of India’s largest private lenders, and raises critical questions about oversight, ethics, and regulatory enforcement in India’s banking and charitable sectors.

Official Statement from LKMM Trust

“This is not a private feud or commercial dispute. It’s a betrayal of public trust, fiduciary duty, and the rule of law. We are calling for swift and decisive regulatory action to restore faith in India’s financial and legal institutions,” added Prashant Kishor Mehta.

Editor’s Note: HDFC Bank has not yet issued an official statement in response to the allegations. This report will be updated as further developments unfold.