Amrito 
HDFC Bank CEO Faces FIR in Loan Dispute: What You Should Know
In a major legal twist, HDFC Bank MD & CEO Sashidhar Jagdishan now finds himself named in a First Information Report (FIR) related to an alleged ₹65.22 crore loan default. The complaint was filed on June 8, 2025, by the Lilavati Kirtilal Mehta Medical Trust, which claims Jagdishan accepted ₹2.05 crore as a bribe to harass a member’s father, and they even have a handwritten diary as proof!
Find out more here.
The Allegations: What the FIR Claims
According to legal documents and media reports, the FIR was filed under the orders of the Bombay Magistrate Court. It cites a seized cash diary that allegedly documents ₹14.42 crore in misappropriated funds. Of this, ₹2.05 crore reportedly went to Jagdishan. The FIR claims that this amount was used to “harass” a trustee’s father.
Additionally, eight other individuals — including former bank employees — were named. The funds are said to have belonged to the Lilavati Hospital trust.
HDFC Bank’s Official Response
HDFC Bank quickly issued a public statement to CNBC-TV18, where it firmly denied all allegations. The bank emphasized that the Mehta family owes over ₹65.22 crore, linked to a defaulted loan from 1995.
“These allegations are not only frivolous but also malicious,” the bank declared.
The bank highlighted that in 2004, the Debt Recovery Tribunal (DRT) issued a recovery certificate. Yet, even after two decades and several enforcement actions, the loan remains unpaid. According to the bank, the FIR is a retaliatory tactic intended to stall legal and financial accountability.
Legal Background: Long-Standing Loan Dispute
The origin of this controversy lies in a loan issued in 1995 to Splendour Gems Limited, earlier known as Beautiful Diamonds Ltd. HDFC Bank claims the company defaulted shortly after and that recovery efforts have been ongoing ever since. Despite the DRT’s ruling, the Mehta family has avoided repayment through multiple legal challenges, many of which have either failed or are still pending.
To complicate matters, the same family also manages the Lilavati Kirtilal Mehta Medical Trust, which has now filed the FIR. This overlap raises concerns about a conflict of interest, as the borrowers are accusing the bank officials trying to recover the loan.
What’s Next in "HDFC Bank CEO Faces FIR in Loan Dispute"
The FIR is now in the hands of the Mumbai Police, who have begun preliminary investigations. Meanwhile, the Mehta family has demanded Jagdishan’s suspension, urging both RBI and SEBI to intervene immediately.
However, HDFC Bank has reaffirmed its support for its CEO. The bank plans to take all necessary legal measures to protect its leadership team and maintain trust with investors and customers.
These recent developments might influence public perception, regulatory scrutiny, and investor confidence. All eyes are now on how the authorities respond.
Final Thoughts on HDFC Bank CEO Faces FIR in Loan Dispute
This legal battle between HDFC Bank and the Mehta family is more than just a financial conflict. It’s now a public confrontation involving reputations, regulations, and legal systems. While the FIR accuses Sashidhar Jagdishan of serious misconduct, the bank maintains the move is a strategic distraction from the real issue — a ₹65.22 crore unpaid loan.
As investigations unfold, stakeholders await clarity. For now, HDFC Bank stands behind its CEO, promising to fight what it calls malicious and baseless allegations.
FAQ
❓ Why was the FIR filed against HDFC Bank CEO Sashidhar Jagdishan?
The FIR was filed by the Lilavati Kirtilal Mehta Medical Trust, which alleged that ₹2.05 crore was paid as a bribe to CEO Sashidhar Jagdishan. The complaint links this to harassment of a trustee’s father and accuses him of being involved in fund misappropriation related to a ₹65.22 crore loan dispute involving Splendour Gems Limited.
❓ What is HDFC Bank’s response to the allegations?
HDFC Bank has strongly denied the allegations, calling them malicious, baseless, and retaliatory. The bank asserts that the Mehta family, who are linked to Splendour Gems, is using the legal system to delay repayment of a long-overdue loan.
❓ What is the Splendour Gems loan dispute?
Splendour Gems Limited, owned by the Mehta family, reportedly defaulted on loan facilities granted by HDFC Bank and others since 1995. The total dues, including interest, stand at ₹65.22 crore as of May 31, 2025. HDFC Bank is pursuing recovery under a 2004 Debt Recovery Tribunal order.
❓ Is the FIR against HDFC Bank CEO linked to Lilavati Hospital?
Yes. The FIR was filed by the Lilavati Kirtilal Mehta Medical Trust, which oversees Lilavati Hospital in Mumbai. The Trust is managed by the Mehta family, who are also connected to the defaulting company, Splendour Gems Limited.
❓ Has any action been taken by RBI or SEBI?
As of now, no official action has been taken by the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI). However, the Lilavati Trust has urged these regulators to suspend Jagdishan and launch a probe.
Amrita Sarkar (pronounced Aam-ri-to), is a content creator, B.Com graduate, CA aspirant, and PGDM student who has discovered a fresh passion for digital writing. With a sharp eye for trends and a deep curiosity for how the internet shapes our lives, Amrito writes insightful pieces on digital media, internet culture, and personal observations. This blog is his creative outlet—where analysis meets storytelling.
