HDFC Bank says ‘frivolous’ FIR filed against its MD & CEO Sashidhar Jagdishan by loan defaulter

HDFC Bank News: HDFC Bank said on Sunday that certain unscrupulous people are targeting its senior officials, including its Managing Director and Chief Executive Officer Sashidhar Jagdishan, in order to thwart the recovery of long outstanding dues owed to it. A “frivolous” FIR was filed by one Mehta family, which owns Splendour Gems (formerly known as Beautiful Diamonds), the private sector lender said in a statement.

Frivolous FIR filed against HDFC Bank MD and CEO, says private sector lender

Splendour Gems defaulted on certain loan facilities granted by HDFC Bank and other consortium banks in 1995, the filing noted.

The Mehta family has filed the complaint against HDFC Bank MD and CEO, and other senior officials, through Lilavati Kirtilal Medical Trust.

HDFC Bank said it “once again unequivocally rejects and strongly condemns the malicious and baseless allegations leveled and maintains that these allegations are completely false, outrageous and constitute a gross misuse of the legal process”.

These actions are a deliberate attempt to obstruct and undermine legitimate recovery proceedings related to substantial long-outstanding dues owed by Splendour Gems, said HDFC Bank.

“Having exhausted all legal avenues without success, these individuals have now resorted to launching personal attacks against the bank and its MD & CEO in a clear attempt to malign their reputation and intimidate the Bank into halting its recovery actions. These actions appear to be a calculated distraction from their own failures and liabilities,” said HDFC Bank.

Dues owed by Splendour Gems to HDFC Bank

As of May 31, the outstanding dues owed by Splendour Gems to HDFC Bank, including interest, amount to approximately Rs 65.2 crore, according to the bank.

The dues remain unpaid “despite a recovery certificate issued by the Hon’ble Debts Recovery Tribunal in 2004 and subsequent enforcement actions”, said HDFC Bank.

According to the filing, in response to ongoing recovery proceedings, Mehta family members have initiated multiple legal actions and  complaints and against HDFC Bank and its sernior officials, including:

• Criminal complaints
• Minority rights petitions
• Representations to regulatory authorities

HDFC Bank said it has dismissed or legally challenged all of the complaints or legal actions.

Allegations are retaliatory in nature: HDFC Bank

HDFC Bank said it “firmly believes that these allegations are retaliatory in nature and have mala fide intention solely at evading repayment of long-standing dues”.

HDFC Bank said it will continue to pursue “all lawful remedies to recover public funds and address the retaliatory actions taken by the Mehta family”. It said it will also keep defending the reputation and integrity of HDFC Bank, its directors and other employees.

HDFC Bank said it believes in fostering a culture of ethics, morals, transparency and integrity, while maintaining the highest standards of corporate governance. Its commitment to ethical conduct is reflected in its policies, procedures and actions.

HDFC Bank share price news

HDFC Bank shares moved within a narrow range on Monday, in tandem with the overall trend on Dalal Street. At 1:45 pm, the HDFC Bank stock was trading 0.1 per cent higher at Rs 1,980.3 apiece on BSE.

Part of the Nifty50 and Nifty Bank indices, the blue-chip stock has risen more than 11 per cent so far in 2025. The headline and banking gauges have risen 5.8 per cent and 11.5 per cent during this period, respectively.