Supreme Court refuses to hear HDFC Bank CEO Sashidhar Jagdishan’s plea seeking to quash Lilavati Trust FIR

New Delhi: The Supreme Court on Friday dismissed a plea by HDFC Bank’s managing director and chief executive, Sashidhar Jagdishan, seeking an urgent hearing on his petition to quash an FIR lodged against him by the Lilavati Kirtilal Mehta Medical Trust, which runs Mumbai’s Lilavati Hospital.

A bench comprising Justices P.S. Narasimha and R. Mahadevan declined to intervene as the Bombay high court has already scheduled the matter for hearing on 14 July. The apex court said it did not wish to interfere with the high court’s proceedings and asked it to hear the case on the fixed date.

“If you are not heard then come here. We sympathise that quash proceedings were initiated in June and bench after bench has recused. We understand that. But now that it is listed…,” the bench noted.

Jagdishan approached the Supreme Court after three Bombay high court judges recused themselves from hearing the matter, leading to delays.

Senior advocate Mukul Rohatgi, appearing for Jagdishan, argued that the FIR was causing serious reputational harm to the bank.

“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. I want interim protection till the matter is heard. The bank has been dragged into a private dispute. The idea is to summon him to the police station. It is affecting my personal reputation,” Rohatgi submitted.

Background of the dispute

In April, the Lilavati Kirtilal Mehta Medical Trust approached the Judicial Magistrate First Class, seeking an investigation into alleged misconduct by Jagdishan.

According to the complaint filed by Prashant Mehta, son of late Kishor Mehta (former director at Splendour Gems Ltd), Jagdishan allegedly accepted a bribe of ₹2.05 crore between March and June 2022 in exchange for providing strategic advice to help the Chetan Mehta Group retain control over the trust’s governance.

The complaint traced its origins to a long-standing financial dispute. Splendour Gems had availed loans from a consortium led by HDFC Bank in 1995. After defaulting, recovery proceedings began in 2002, and in 2004, the Debts Recovery Tribunal ordered repayment of ₹14.74 crore with 16% interest. Prashant Mehta alleged that his father’s death in 2024 was caused by “mental and physical harassment” due to the bank’s recovery process. Upon taking charge of the company, he claimed to have discovered diary entries indicating payments to Jagdishan.

On 29 May, the judicial magistrate directed Bandra Police to register an FIR under IPC Sections 406 (criminal breach of trust), 409 (criminal breach of trust by banker/public servant), and 420 (cheating), and investigate the allegations. Two days later, Bandra Police registered the FIR against Jagdishan, Chetan Mehta, and six others. A separate FIR was also filed against Chetan Mehta, Phoenix ARC Pvt. Ltd, and others for alleged embezzlement of ₹2.25 crore from the Trust.

Also Read: HDFC Bank CEO vs Lilavati Trust: Why 3 Bombay HC judges recused from hearing case, what happens next 

Additional allegations

The Trust further alleged that Jagdishan misused his position at HDFC Bank to interfere in its internal governance and that he and his family received free medical treatment from Lilavati Hospital, a benefit never formally acknowledged. It also claimed a potential conflict of interest, stating that the Trust had deposits and investments worth ₹48 crore with HDFC Bank since 2022.

The complaint alleged that ₹1.5 crore was offered as purported CSR funds to facilitate the destruction or forgery of evidence relating to internal disputes.

Jagdishan then approached the Bombay High Court last week, seeking to quash the 29 May order and the FIR, along with an interim stay on the investigation and protection from any coercive action.

However, the high court declined to grant urgent relief on 30 June and scheduled the matter for 14 July.