HDFC Bank CEO faces ₹1,000cr defamation suit from Lilavati Trust
What's the story
The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has filed a ₹1,000 crore civil defamation lawsuit against Sashidhar Jagdishan, the Managing Director and Chief Executive Officer of HDFC Bank. The lawsuit accuses Jagdishan of making malicious and false statements against the Trust and its permanent trustee, Prashant Mehta. The legal action is seen as a response to what the Trust perceives as a deliberate attempt to tarnish its image and hinder its functioning as a public charitable trust.
Additional measures
LKMM Trust clarifies it has never borrowed from HDFC Bank
Along with the civil defamation suit, the LKMM Trust has also filed a criminal complaint against HDFC Bank's CEO, spokesperson, and Corporate Communication Head. The complaint was filed before the Metropolitan Magistrate in Girgaon. The Trust clarified that neither it nor Prashant Mehta has ever borrowed from HDFC Bank but have instead deposited ₹48 crore as fixed deposits and bonds.
Bank's defense
HDFC Bank denies any wrongdoing, hints at legal action
Responding to the allegations, HDFC Bank denied any wrongdoing and accused certain individuals of misusing the legal process to delay loan recovery from defaulters. The bank specifically mentioned Splendour Gems Ltd (formerly Beautiful Diamonds Ltd) in this context. HDFC Bank also expressed its concern for stakeholders and hinted at possible legal action against those making baseless allegations with malicious intent or involved in spreading such claims.