The Supreme Court on Friday declined to entertain a plea by HDFC Bank’s managing director and CEO, Sashidhar Jagdishan, seeking urgent hearing of his petition to quash an FIR filed by the Lilavati Kirtilal Mehta Medical Trust, which runs Mumbai’s Lilavati Hospital.
A bench of Justices P.S. Narasimha and R. Mahadevan refused to intervene, noting that the Bombay High Court has already listed the matter for hearing on July 14.
Jagdishan approached the apex court after three Bombay High Court judges recused themselves from hearing the matter, stalling progress in the case.
Senior advocate Mukul Rohatgi, appearing for Jagdishan, argued that the FIR was causing significant reputational damage. “For the last three weeks, we haven’t got a hearing in the high court. I am the MD. I have nothing to do with this matter. I am being roped in; the bank is suffering. The idea is to summon him to the police station. It is affecting my personal reputation,” he told the court, seeking interim protection.
The dispute stems from a complaint filed by Prashant Mehta, son of the late Kishor Mehta, a former director of Splendour Gems Ltd. In April, the Lilavati Trust moved a Judicial Magistrate in Mumbai seeking an investigation into alleged misconduct by Jagdishan.
According to the complaint, Jagdishan allegedly accepted a ₹2.05 crore bribe between March and June 2022 in exchange for providing strategic advice to help the Chetan Mehta Group retain control of the Trust’s governance.
The complaint also links the issue to a decades-old financial dispute. Splendour Gems had defaulted on loans from a consortium led by HDFC Bank in 1995. Recovery proceedings began in 2002, and in 2004, the Debt Recovery Tribunal ordered repayment of ₹14.74 crore with 16 percent interest.
On May 29, the judicial magistrate directed Bandra Police to register an FIR under IPC Sections 406 (criminal breach of trust), 409 (breach of trust by banker/public servant), and 420 (cheating). The FIR was filed against Jagdishan, Chetan Mehta, and six others on May 31. A separate FIR was also registered against Chetan Mehta, Phoenix ARC Pvt Ltd, and others for alleged embezzlement of ₹2.25 crore from the Trust.
The Trust further alleged that Jagdishan misused his position at HDFC Bank to interfere in its internal affairs and that he and his family received free medical treatment at Lilavati Hospital—benefits never formally disclosed. The complaint pointed to a conflict of interest, noting the Trust has held deposits and investments worth ₹48 crore with HDFC Bank since 2022.
It also alleged that ₹1.5 crore was offered as CSR funds to facilitate the destruction or forgery of internal dispute-related evidence.
Jagdishan had moved the Bombay High Court last week seeking to quash the May 29 order and the FIR, while also requesting an interim stay on the investigation and protection from coercive action. However, the high court declined urgent relief on June 30 and listed the matter for July 14.
(By arrangement with livemint.com)
