HDFC Bank Says Mehta Family Denies Trust's Allegations As Retaliatory

HDFC Bank on Sunday said Splendour Gems Ltd., a company owned by the Mehta family of the Lilavati Kirtilal Mehta Medical Trust, owed the bank ₹652.2 million as of May 31 and accused the family of launching retaliatory legal attacks to avoid repayment.

The bank clarified in an exchange filing that the dues date back to 1995, and a recovery certificate was issued in 2004 by the Debts Recovery Tribunal. Despite enforcement actions, the dues remain unpaid, it said. HDFC Bank said it would continue to pursue all legal means to recover the public funds.

The statement follows a call from the Lilavati Trust on Saturday for the suspension and prosecution of HDFC Bank MD and CEO Sashidhar Jagdishan, alleging corruption and a breach of trust. The Trust cited a seized diary showing ₹144.2 million in misappropriated funds, with ₹20.5 million allegedly received by Jagdishan.

HDFC Bank said the claims were "baseless and malicious", adding that prior legal complaints by the Mehta family were either dismissed or are under challenge. The bank said the recent actions are a "gross misuse of legal process" and a "deliberate attempt to obstruct recovery proceedings".