Lilavati Trust files ₹1,000 cr defamation case against HDFC CEO Jagdishan

Lilavati Trust accuses HDFC Bank CEO of running a smear campaign and facilitating fraud, filing a ₹1,000 crore defamation suit and a criminal complaint in Mumbai

Amid an intensifying legal confrontation with HDFC Bank, the Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has filed a ₹1,000 crore civil defamation lawsuit against the bank’s Managing Director and Chief Executive Officer, Sashidhar Jagdishan, according to a report by Mint on Friday.

 

“The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has filed a ₹1,000 crore civil defamation lawsuit against Mr Sashidhar Jagdishan, Managing Director & CEO of HDFC Bank, over a series of malicious, false, and defamatory statements made against the Trust and its Permanent Trustee, Prashant Mehta,” the Trust stated in a press release, as quoted by Mint.

 

 

The Trust, which manages Mumbai’s renowned Lilavati Hospital, had previously lodged a complaint against Jagdishan, accusing him of financial fraud. Earlier this week, Jagdishan filed a petition in the Bombay High Court seeking to quash the case.

 

In addition to the defamation suit, the Trust has also submitted a criminal complaint before the Metropolitan Magistrate in Girgaon, Maharashtra, the report noted. 

 

‘Smear campaign must be held accountable’, says Trust

 

Describing the lawsuit as “a significant step in holding the HDFC CEO accountable”, the Trust claimed it was responding to “a deliberate and sustained smear campaign”. It emphasised that its actions were not retaliatory, but a response to attempts to discredit a respected charitable institution and its founding family.

 

The Trust further stated that HDFC Bank had not submitted “any supporting documentation or conclusive evidence” to justify its claims.

 

Refuting specific allegations, the Trust stated that it and Prashant Mehta were “not connected to the affairs of Splendour Gems in any manner whatsoever as fraudulently espoused by the CEO of HDFC”, the report added. 

 

₹2 crore payment at centre of financial fraud claims

 

The ongoing dispute between the LKMM Trust and HDFC Bank centres around allegations made by the Trust, accusing Jagdishan of financial misconduct and undue influence over the hospital’s governance.

 

The Trust’s earlier complaint alleged that members of the Chetan Mehta Group paid ₹2.05 crore to Jagdishan in exchange for assistance in retaining control of the Trust. This payment, it claimed, formed part of a broader scheme to manipulate the hospital’s operations and constituted an abuse of position.

 

The Trust also alleged that an offer of ₹1.5 crore had been made to hospital staff, misrepresented as a corporate social responsibility (CSR) initiative. 

 

Bank denies all charges, calls them obstructive

 

HDFC Bank has denied all allegations, calling them “absurd”. Senior Advocate Amit Desai, appearing for Jagdishan at the Bombay High Court, argued that the Trust’s actions came in retaliation to recovery proceedings initiated by the bank against a company owned by the father of one of the trustees.

 

The bank maintained that the Trust was attempting to obstruct and undermine legal recovery actions tied to outstanding dues owed by the family-run firm Splendour Gems via the LKMM Trust.

 

However, the Trust countered that no loan ledger or agreement had been presented in court to substantiate the existence of any such loan from HDFC Bank.