AGENCY
new delhi, june 9
India’s largest private sector lender, HDFC Bank, said it will explore all legal avenues to defend its Managing Director and CEO, Sashidhar Jagdis-han, following serious allegations made by the Lilavati Kirtilal Mehta Medical (LKMM) Trust.
Notably, Lilavati sought regulatory action and criminal prosecution against the bank’s top executive over an alleged financial fraud.
In a strongly worded statement, HDFC Bank said it has received comprehensive legal advice and is committed to taking necessary steps to protect the integrity and reputation of its MD & CEO. “HDFC Bank takes immense pride in the integrity and leadership of its MD & CEO,” the statement read. Accor-ding to reports, the LKMM Trust has accused Jagdishan of receiving ?2.05 crore from a former member of the Trust, allegedly with the intent of harassing the father of a current trustee.
The Trust has reportedly petitioned financial regulators to suspend Jagdishan and initiate criminal proceedings. Responding to the allegations, HDFC Bank categorically denied the charges, calling them “baseless, malicious, outrageous, and preposterous.” The bank asserted that its CEO is being targeted by individuals misusing the legal system in order to obstruct the recovery of longstanding dues from wilful defaulters. “The allegations have been made by unscrupulous elements who have consistently failed to thwart recovery proceedings, including at the level of the Hon’ble Supreme Court,” the bank said. The controversy escalated after the Trust cited a May 30 order by the Mumbai Magistrate Court, which directed the Bandra police to file a First Information Report (FIR) against Jagdishan and seven others.
In its rebuttal, HDFC Bank named Prashant Mehta, a trustee of the LKMM Trust, alleging that he and his family owe substantial unpaid dues to the bank. It said recovery efforts have been ongoing for over two decades, during which the Mehta family has repeatedly resorted to “vexatious litigation” to delay enforcement. “Having failed consistently through the judicial process, including before the Supreme Court, they have now resorted to personal attacks on the Bank’s MD & CEO in a clear attempt to intimidate and deflect,” the bank’s statement read.
HDFC Bank expressed full faith in the judicial system and said it is confident that the courts will recognise the alleged misuse of legal proceedings aimed at maligning the bank’s leadership.
