Lilavati Trust Files ₹1,000 Crore Defamation Suit Against HDFC Bank CEO

The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust), which runs Mumbai’s famous Lilavati Hospital, has filed both:

• A ₹1,000 crore civil defamation lawsuit against HDFC Bank MD & CEO Sashidhar Jagdishan, accusing him of making “malicious, false and defamatory” comments about the Trust and its trustee, Prashant Mehta
• A criminal defamation complaint, for which the Metropolitan Magistrate of Girgaon has issued summons notices

The Trust claims these statements are part of a “coordinated campaign” to tarnish its reputation and hinder its operations as a charitable institution

🧩 Why This Matters

1. Legal Escalation: Alongside the ₹2.05 crore bribery FIR, this suit significantly magnifies the dispute into public defamation territory
2. Reputation Risk: Involving one of India’s top bankers, the legal battle could impact public trust in HDFC Bank.
3. Bank’s Denial: HDFC Bank has strongly defended Jagdishan, calling the claims “malicious and baseless” and hinting at counter-litigation
4. Underlying Loan Dispute: The conflict stems from a decades-old default by Splendour Gems (1995), with contested outstanding amounts between ₹4.8 crore and ₹65.22 crore livemint
5. Complex Corporate Governance: Raises concerns about governance between banks and charitable trusts in high-stakes recovery litigation.
6. Multiple Legal Fronts: The FIR quashing petition is pending before Bombay High Court, while defamation and criminal cases are underway simultaneously .

⏳ Current Status & Timeline

• May 31, 2025: FIR registered against Jagdishan under Sections 420/409 alleging bribery related to trust control.
• June 8: Trust files defamation civil suit (₹1,000 cr).
• June 9–11: Trust lodges criminal complaint; HDFC denies allegations and mentions legal countermeasures
• Ongoing: Bombay High Court is hearing Jagdishan’s plea to quash the FIR .

✅ What to Watch

• Court Outcomes: Court decisions on FIR quashing and defamation claims will set precedents for future trust–bank disputes.
• HDFC’s Counter Actions: Possible defamation or legal suits initiated by HDFC Bank.
• Reputation Fallout: Investor and customer response to the growing legal dispute.

🔍 Final Takeaway

What began as a financial recovery dispute has intensified into a high-profile multi-pronged legal battle involving allegations of bribery, defamation, and reputational sabotage—all centered on Sashidhar Jagdishan. With major hearings underway, this case may reshape how financial institutions interact with charitable entities in complex loan recovery scenarios.