Whalesbook
Court Dismisses Bribery Case Against HDFC Bank CEO
The Bombay High Court has dismissed a bribery case filed against HDFC Bank's Managing Director and CEO, Sashidhar Jagdishan. A division bench, including Justices M S Karnik and N R Borkar, ruled that the complaint by the Lilavati Kirtilal Mehta Medical Trust was a "counterblast" – a retaliatory action – against HDFC Bank's efforts to recover significant dues.
Trustee Discord Cited as Root Cause
The judges highlighted deep disagreements among the trustees of the Lilavati Kirtilal Mehta Medical Trust as the main reason for the complaint. The court noted "serious acrimony, distrust and strained relations" within the Trust, which operates the Lilavati Hospital. This internal conflict, they stated, drove the complaint rather than any actual wrongdoing by Jagdishan. The bench pointed out that banks must pursue loan recoveries and that the complaint was a result of the Trust's internal fights.
Lack of Evidence Led to Ruling
The court found no sufficient evidence to justify an investigation, calling the continuation of the First Information Report (FIR) an "abuse of the process of court." This decision was based on the complaint's perceived lack of good faith. The legal action began as HDFC Bank sought to recover ₹65.22 crore from Splendour Gems Ltd., a company linked to the Mehta family, due to loan defaults.
Background of the Financial Dispute
The core of the dispute involves HDFC Bank's efforts to recover substantial dues from Splendour Gems Ltd. The Trust's accusations, including claims about payments to Jagdishan, were found insufficient by the court to support criminal charges like breach of trust or cheating. Jagdishan had argued that the complaint was a retaliatory move directly stemming from the bank's long-standing efforts to collect over Rs 65 crore in outstanding debts from the Mehta family.