The Lilavati Hospital has called for punitive action against the HDFC CEO Sashidhar Jagdishan, who allegedly accepted money from the father of a trust member with the Lilavati Kirtilal Mehta Medical (LKKM). According to the trust, its former members paid Mr. Jagdishan Rs. 2.05 crore with the intent of harassing the father of a current trust member.
The complaint filed on 8th June 2025 had the internet questioning what really happened. Because HDFC is one of India’s most prominent private-sector banks. And the scrutiny it has been facing is making the retail account holders and investors worry if their money is at risk.
What Are the Allegations?
As per the sources, FIR stems from a court order dated May 30, 2025, leading police to investigate charges of alleged financial fraud. The LKKM trust claims it has handwritten cash-diary entries documenting a Rs 2.05 crore payment to Jagdishan. The funds were allegedly used to harass the father of a current trust member used to harass the father of a current trust member.
The allegations further include
- Conspiracy with former trustees of the hospital who are themselves accused of money laundering, embezzlement, and other financial malpractices.
- Misuse of institutional position to influence or intimidate key individuals.
- Alleged offer of Rs 1.5 crore disguised as a CSR donation to hospital staff, purportedly to conceal records.
The trust has surged the matter by calling on the Reserve Bank of India (RBI), the Central Vigilance Commission (CVC), the Securities and Exchange Board of India (SEBI), the HDFC Board, and the Ministry of Finance.
How did HDFC Bank Respond?
Of course the bank has come out to support its top executive, claiming that the allegations leveled were “baseless and malicious.” As per the bank, one of the trust’s trustees, Prashant Mehta, along with his family members, owes significant sums to the bank, which remain unpaid.
The bank is also obtaining some essential legal advice and representation in this regard and it is also committed to pursuing legal remedies and options to defend the CEO.
The bank has taken its steps and multiple legal attempts by the Mehta family, including petitions, FIRs, and regulatory complaints, have now been dismissed. Additionally, the bank has committed to pursuing all lawful remedies, including legal resources, and reaffirmed its trust in Jagdishan’s integrity and leadership.
How Can It Affect Account Holders?
There are more than 100 million account holders in HDFC Bank. But for the average account holder, the immediate risk is low. However, HDFC Bank remains a systemic institution with a robust balance sheet, over 9,000 branches nationwide and the status of Domestic Systemically Important Bank (DSIB). Therefore, the bank has repeatedly affirmed its sound governance and ethical practices, underpinned by internal controls and regulatory compliance. Additionally, the bank’s depositors enjoy statutory protection under the Deposit Insurance and Credit Guarantee Corporation (DICGC), up to ₹5 lakh per depositor per bank. Therefore, the risk for the account holders is apparently low.
End Note
The sudden FIR against the CEO of the HDFC bank is a high-stakes controversy. The RKKM Trust lays serious allegations rooted in a diary of cash entries and internal governance failures. Additionally, the HDFC bank sharply rejects the claims, framing them as strategic retaliation from defaulting borrowers. The account holders and investors should remain informed, but there is no need for panic. Thus, everyday banking services remain secure for now and the deposits of the bank are protected.
About The Author
