Lilavati trust slaps ₹1,000-crore defamation suit on HDFC Bank CEO
Filed before a civil court, the suit accuses Jagdishan of making 'malicious, false, and defamatory statements' against the trust and its permanent trustee Prashant Mehta. In a strongly worded statement, the trust said the legal action was necessary to counter what it described as a 'coordinated campaign' to malign its reputation and obstruct its functioning as a public charitable institution.
Separately, the trust has also filed a criminal complaint with a magistrate court in Girgaon. On June 16, the court issued notices to Jagdishan, HDFC Bank CEO Madhu Chibbar, the bank's corporate communications head, and others named in the complaint. 'This marks a significant step in holding the HDFC CEO accountable for what the trust alleges is a deliberate and sustained smear campaign,' the trust said.
Responding to Jagdishan's court petition, the trust questioned his attempt to discredit valid judicial orders and FIRs. 'We have full faith in the Indian judiciary. Unlike Mr Jagdishan, who seeks to label due legal process as frivolous, we have followed the rule of law at every step,' it said.
The trust also challenged HDFC Bank's claim of a ₹ 65 crore loan tied to Splendour Gems, a firm owned by the Mehta family. 'The bank initially cited an outstanding of ₹ 5 crore. This sudden escalation to ₹ 65 crore is an imaginary figure, a smokescreen created by Jagdishan to distract regulators and the public from his own corruption,' the trust alleged.
Among the more serious accusations is that Jagdishan accepted free medical treatment and was involved in facilitating illegal financial transactions—including a ₹ 2.05 crore bribe, ₹ 48 crore in undisclosed deposits, and ₹ 1.5 crore allegedly routed to doctors under the guise of CSR.
'The ₹ 48 crore was deposited without the consent of founder-trustees and without mandatory high court approval, despite an operational injunction. This constitutes gross contempt of court,' the statement said.
Calling the bank's allegations baseless and unsupported by documentation, the Trust reiterated that it has never been a borrower of HDFC Bank. 'On the contrary, we have been a lender—placing ₹ 48 crore in fixed deposits and bonds,' it said.
'This is not just a legal battle. It is a stand for truth and institutional accountability. When the head of a major financial institution targets a charitable trust with falsehoods while failing to back his claims with documents, it becomes clear the intent is not justice but intimidation,' said Prashant Mehta, permanent trustee of LKMM Trust.
In his plea before the High Court two days ago, Jagdishan has strongly denied all allegations, calling the FIR 'malicious and vindictive' and accusing the complainant of misusing the name of the Lilavati Trust to settle personal scores.
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