Lilavati Kirtilal Mehta Medical Trust, a well-known hospital trust, has accused the CEO of HDFC Bank of being involved in a fraud worth ₹14 crore and filed an FIR (First Information Report) on Sunday, 8 June 2025. According to an NDTV report, the Trust has accused him and eight others (including former Trust officials and ex-bank employees) of financial fraud and misuse of trust funds. They have also called for his suspension and legal action. They claim that the HDFC CEO got ₹2.05 crore from a former member of the Trust to harass the father of someone who is currently a trustee.
Criminal Charges Filed The Trust has filed multiple criminal charges against those involved. These include:
1) Financial Fraud – This means cheating or dishonestly handling money—like lying about finances or stealing funds.
2) Criminal Conspiracy – This means two or more people secretly planning to do something illegal together.
3) Misuse of Position – This charge is for using one’s job or power (especially in a high position) for personal gain or to harm others.
4) Tampering with Evidence – This means changing, hiding, or destroying evidence to mislead the investigation or protect the guilty.
5) Obstructing Justice – This refers to trying to block or delay police work or legal proceedings—for example, by lying to authorities or interfering with witnesses.
What Led to the Current Dispute?
The issue dates back to 1995, when HDFC Bank and other banks gave a loan to a company called Splendour Gems Ltd. Splendour Gems, owned by the Mehta family, defaulted in 2001. In 2004, the Debt Recovery Tribunal issued a recovery order for the unpaid loan, which remains largely unpaid to this day.
What HDFC Bank Has to Say About the Accusations?
HDFC Bank strongly denies all the accusations. They say these claims are false and are only being made to damage the bank’s reputation. HDFC Bank, in a statement to the Stock Exchange (BSE), said: The FIR is “malicious, baseless, and frivolous.” They claim the Mehta family is trying to pressure the bank into stopping its efforts to recover money from an old loan default. According to HDFC, the Mehta family have been filing false legal cases for years after failing to repay loans, even losing in the Supreme Court. It claims Prashant Mehta (a trustee) and his family owe large amounts of unpaid loans to HDFC Bank.
HDFC Bank says it will continue using legal methods to recover public money and will defend its CEO, employees, and reputation against what it calls retaliatory personal attacks. The bank has said they will take legal action against Lilavati Trust for these allegations.
Now the bigger concern is that SEBI, the stock market regulator, rules say that companies must report serious complaints or FIRs involving their top executives — especially if it could affect the company’s image or stock, but HDFC has not yet reported these FIRs, and that could be a problem. Since HDFC is one of the top 10 banks in the world by market value, the case will be watched closely. HDFC Bank’s share price might go down when the market opens on Monday, 9 June 2025.
