HDFC Bank Refutes Charges Against MD

Mumbai: HDFC Bank has strongly denied allegations made by Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) which called for the suspension and prosecution of bank’s Managing Director and CEO, Sashidhar Jagdishan, in an alleged financial fraud, which the bank termed as “baseless and malicious”.

HDFC Bank said it has obtained “comprehensive legal advice and representation in this regard” and will defend its MD and CEO’s reputation.

Lilavati Trust, which oversees a prominent healthcare institution in Mumbai, on Saturday called for the immediate suspension and prosecution of Jagdishan, accusing him of involvement in a series of financial frauds concerning the Trust.

The allegations against Jagdishan stated that one of the erstwhile members of LKMM had paid him Rs 2.05 crore, for the sole purpose of harassing the father of one of the current members of the trust. The petitioners have alleged that the transaction was recorded in a hand written diary. The diary was recovered by the current members.

An HDFC Bank spokesperson said this is a recovery case of the long outstanding loan due to the bank. “The Trustee, Prashant Mehta and his family members owe substantial amounts to HDFC Bank which were never repaid. Recovery and enforcement actions have been taken by the Bank over two decades and at every stage Prashant Mehta and his other family members have launched numerous vexatious legal actions,” the bank spokesperson further stated.