HDFC Bank to take legal-action over fraud claims against CEO
What's the story
HDFC Bank has announced its decision to take legal action against the Lilavati Kirtilal Mehta Medical (LKMM) Trust. The move comes after the trust called for the suspension and prosecution of Sashidhar Jagdishan, MD & CEO of HDFC Bank, over alleged financial fraud. The bank strongly denies these allegations, claiming they are attempts to obstruct loan recovery from defaulters.
Legal representation
Bank's response to allegations
HDFC Bank has said that it has obtained comprehensive legal advice and representation in this matter. The bank is committed to exploring all possible legal options to defend the reputation of its MD & CEO. In response to the allegations, HDFC Bank strongly rejected them, stating that its MD & CEO is being targeted by unscrupulous individuals abusing the legal system to obstruct recovery of a long-standing loan from willful defaulters.
Counter allegations
Trust's trustee owes huge sum to the bank
HDFC Bank has accused the LKMM Trust, its trustees, and officials of making baseless and malicious allegations against Jagdishan. The bank strongly denied what it called outrageous and preposterous accusations. In response to these claims, HDFC Bank said that one of the trust's trustees Prashant Mehta and his family members owe a huge sum to the bank which remains unpaid despite recovery efforts for over two decades.
Legal recourse
LKMM trust has filed several legal actions to delay recovery
HDFC Bank has announced its intention to take legal action against the LKMM Trust. The bank claims that Mehta and his family have filed multiple vexatious legal actions at every stage to delay recovery. Having failed consistently, they have now resorted to personal attacks on the bank's MD & CEO in a clear attempt to intimidate and deflect.