SC to hear on July 4 HDFC Bank MD’s plea against bribery FIR

The case, initiated on the complaint of Lilavati Kirtilal Mehta Medical Trust, accuses Jagdishan of accepting ₹2.05 crore in bribes to aid a group’s illegal control over the governance of the Trust

The Supreme Court on Thursday agreed to take up on July 4 a petition filed by HDFC Bank’s managing director and CEO Sashidhar Jagdishan seeking quashing of a first information report (FIR) registered against him for alleged cheating and criminal breach of trust. The case, initiated on the complaint of Lilavati Kirtilal Mehta Medical Trust, accuses Jagdishan of accepting ₹2.05 crore in bribes to aid a group’s illegal control over the governance of the Trust.

Jagdishan, who took charge as MD and CEO of HDFC Bank in 2020, has urged the courts to quash the FIR. (File ANI photo)

A bench comprising Justices MM Sundresh and K Vinod Chandran took note of a mention made by senior advocate Mukul Rohatgi, who sought urgent hearing and interim protection from coercive action against Jagdishan. “The matter is already directed to be listed for tomorrow,” the bench said.

Calling the FIR “frivolous”, Rohatgi informed the court that at least five judges of the Bombay High Court had recused themselves from hearing the petition filed by Jagdishan to quash the FIR. “I am pressing for a no coercive action order,” submitted Rohatgi, flagging the delay in hearing before the High Court and its adverse implications for his client.

The matter comes amid mounting litigation over the functioning and control of the Lilavati Trust, which manages the renowned Lilavati Hospital in Mumbai’s Bandra.

Earlier this week, the Bombay High Court refused to expedite Jagdishan’s petition, rejecting the urgency plea. On June 30, a division bench said there was “no urgency” and listed the case for regular hearing on July 14.

The FIR in question was registered by Bandra Police following a May 29 order by a local magistrate, acting on an application moved by the Trust. The police booked Jagdishan and several others, including former trustee Chetan Mehta, under sections 406, 409, and 420 of the Indian Penal Code (IPC) for criminal breach of trust and cheating. The magistrate noted that the “amount involved is high” and the allegations, prima facie, constituted cognisable offences warranting investigation.

According to the complaint filed by the Lilavati Kirtilal Mehta Medical Trust, Jagdishan allegedly received ₹2.05 crore between March 2022 and June 2023 in return for providing financial advice to benefit the Chetan Mehta group. The Trust claimed the payments were part of a conspiracy to manipulate its governance and oust certain trustees.

In its public statement last month, the Trust alleged that Jagdishan, as the head of a prominent private bank, misused his position to interfere in the internal affairs of a charitable institution. It further sought a CBI probe into the matter.

The root of the dispute lies in a long-standing feud over the control of the Trust and its assets. In April this year, Prashant Mehta -- son of the late Kishor Mehta, Founder Permanent Trustee for Life, approached the magistrate alleging that his father’s death in 2024 was due to mental and physical harassment arising from recovery proceedings initiated by HDFC Bank over unpaid loans dating back to the 1990s.

Kishor Mehta was the director of Splendour Gems Ltd (earlier Beautiful Diamonds Ltd), which had defaulted on loans worth ₹14.74 crore plus interest. The Trust alleged that payments to Jagdishan were made at the behest of Chetan Mehta and others to tilt the Trust’s internal decisions against Kishor Mehta and his family. A diary purportedly found by Prashant Mehta allegedly recorded these payments, which became the basis of the complaint.

In his petition before the Bombay High Court, Jagdishan termed the FIR “retaliatory” and “motivated”, asserting that it was filed after the bank revived recovery efforts against the Mehta-owned firm Splendour Gems, which reportedly owed ₹65.22 crore as of May 31.

He argued that the allegations relied solely on a “xerox copy of selective cash records”, lacked corroboration, and were unsupported by any witness or other credible material. The diary’s authenticity was also questioned. He contended that the May 29 magistrate order directing registration of the FIR was “flawed, self-contradictory and deplorable.”

Jagdishan, who took charge as MD and CEO of HDFC Bank in 2020, has urged the courts to quash the FIR and halt the investigation in the interim. His petition also highlighted that repeated recusals by high court judges had resulted in inordinate delays, jeopardising his reputation and liberty.

Besides the FIR against Jagdishan, a second complaint filed by the Trust also led to an FIR against Chetan Mehta and others for alleged embezzlement of ₹2.25 crore from the Trust’s funds.