Bombay High Court Quashes Bribery Case Against HDFC Bank CEO, Calls It ‘Counterblast’
The Bombay High Court on Tuesday quashed a bribery case filed against Sashidhar Jagdishan, Managing Director and CEO of HDFC Bank, by the Lilavati Kirtilal Mehta Medical Trust. The court termed the complaint a “counterblast” to recovery proceedings initiated by the bank to reclaim dues exceeding ₹65 crore. A division bench of Justices M S Karnik and N R Borkar observed that financial institutions are duty-bound to pursue loan recoveries and found no merit in the allegations warranting investigation.
The bench highlighted that the complaint stemmed from “serious acrimony, distrust and strained relations” between former and current trustees of the Trust, which runs Lilavati Hospital in Mumbai’s Bandra. It rejected claims that the Trust’s founder Kishore Mehta’s death in 2024 was linked to pressure from the bank, stating that bank officials could not be held responsible. The court concluded that the complaint lacked bona fide intent and continuing the FIR would amount to an abuse of the legal process.
The case originated from HDFC Bank’s recovery action against Splendour Gems Ltd, a Mehta family-owned firm, over dues of ₹65.22 crore. The Trust had alleged that a diary recovered during proceedings indicated payments of ₹2.05 crore to Jagdishan. However, the court dismissed these claims and allowed Jagdishan’s plea to quash the FIR and set aside a magistrate’s May 2025 order directing a police probe. It also noted that recovery proceedings remain ongoing before the Debt Recovery Tribunal, with substantial dues yet to be recovered.
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