SC declines to quash FIR against HDFC Bank MD Sashidhar Jagdishan

No threat of arrest till July 14 when Bombay HC will hear plea: Counsel

The Supreme Court on Friday declined to quash the first information report (FIR) lodged against HDFC Bank’s Managing Director and Chief Executive Officer (MD & CEO) Sashidhar Jagdishan by the Lilavati Kirtilal Mehta Medical Trust (LKMMT), which runs Mumbai’s Lilavati Hospital.

 

A bench of Justices P S Narasimha and R Mahadevan declined to intervene in the matter since the Bombay High Court is scheduled to hear the case on July 14.

 

“If you are not heard, then come here. We sympathise that quash proceedings were initiated in June and bench after bench has recused. We understand that. But now that it is listed…,” the apex court bench said.

 

Jagdishan moved the Supreme Court after three Bombay High Court judges recused themselves from hearing the matter.

 

Senior advocate Mukul Rohatgi, appearing for Jagdishan, argued that the bank's reputation had taken a hit due to the FIR. 

 

“For the last three weeks, we haven’t got a hearing in the (Bombay) high court. I am the MD. I have nothing to do (with this matter). I am being roped in, the bank is suffering. I want interim protection till the matter is heard. The bank has been dragged into a private dispute. The idea is to summon me to the police station. It is affecting my personal reputation,” Rohatgi argued.

 

Speaking to Business Standard, Rohatgi said during this interim period (till July 14), there is no threat of arrest of his client. “Not at all. The case is mala fide,” he said when asked whether Jagdishan can be arrested before the court hearing.

 

An email sent to the bank seeking comments on Friday’s development did not elicit a response till press time.

 

The LKMMT has accused Jagdishan of financial misconduct and of exerting undue influence over the hospital’s governance. The dispute between the Trust and the bank escalated in June when the former 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 by misusing 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.

 

The FIR was registered at the Bandra police station following an application filed by the Trust. Jagdishan faces charges of cheating and criminal breach of trust, including those applicable to a public servant.

 

Previously, the bank accused the Mehta family of attempting to obstruct and undermine legitimate recovery proceedings related to substantial, long-standing dues owed by the family-owned Splendor Gems through LKMMT.

 

The bank has “unequivocally” rejected and condemned the “malicious and baseless” allegations levelled against Jagdishan, terming them as completely false, outrageous, and constituting gross misuse of the legal process.