HDFC Bank CEO moves SC to quash FIR filed by Lilavati Hospital Trust

HDFC Bank CEO Sashidhar Jagdishan moved the SC against a cheating FIR filed by Lilavati Hospital Trust, which alleged he accepted ₹2.05 crore to help one group retain control of the Trust

HDFC Bank Managing Director and CEO Sashidhar Jagdishan on Thursday moved the Supreme Court seeking to quash a first information report (FIR) registered against him on charges of cheating and fraud, news agency PTI reported. The FIR was filed following a complaint by the Lilavati Kirtilal Mehta Medical Trust, which operates Mumbai’s well-known Lilavati Hospital. 

On Thursday, senior advocate Mukul Rohatgi, appearing for Jagdishan, sought an urgent hearing before a Bench comprising Justices MM Sundresh and K Vinod Chandran. The court agreed to list the matter for hearing on Friday. 

“This is an urgent matter. I request for listing tomorrow on behalf of the HDFC Bank and its MD. A frivolous FIR has been lodged against the MD and the bank by trustees of Lilavati hospital who are litigating against the other group of trustees,” Rohatgi submitted before the Bench.   

 

Allegations by the trust

The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has accused Jagdishan of financial misconduct and undue influence over the hospital’s governance. The dispute between the Trust and the bank escalated in June when the Trust filed a ₹1,000 crore civil defamation suit against Jagdishan. 

The complaint alleges that members of the Chetan Mehta Group paid ₹2.05 crore to Jagdishan in return for assistance in retaining control over the Trust. The amount was allegedly part of a larger scheme to influence the functioning of the hospital and misuse his corporate position. 

Additionally, the Trust claimed that an offer of ₹1.5 crore was made to hospital staff, disguised as part of a corporate social responsibility initiative. It accused Jagdishan of interfering in the internal affairs of a charitable institution using his authority as the head of a major private sector bank.

 

FIR and legal proceedings

The FIR was registered at the Bandra police station based on a magistrate’s directive under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), following an application filed by the Trust. Jagdishan faces charges including cheating and criminal breach of trust, including those applicable to a public servant. 

Jagdishan’s plea to quash the FIR was first listed in the Bombay High Court in June. However, Rohatgi informed the Supreme Court that three different Benches of the High Court have recused themselves from hearing the matter. 

“Every day the bank is suffering,” Rohatgi told the Bench, stressing the urgency of the matter. He further alleged that the FIR was an attempt to “twist the arm” of the bank, as it was in the process of recovering dues from the Trust. 

The LKMM Trust has also approached the High Court seeking a probe by the Central Bureau of Investigation (CBI) into the alleged misconduct.

 

[With PTI inputs]