HDFC CEO Challenges Fraud Allegations by Lilavati Trust

HDFC Bank's Managing Director and Chief Executive Officer Sashidhar Jagdishan has approached the Bombay High Court, seeking quashing of the FIR registered against him based on the financial fraud allegations made by the Lilavati Trust, which oversees the Mumbai-based Lilavati Hospital.

The plea was mentioned before the court on Wednesday and will be heard in due course of time.

The FIR stems from a magistrate court's order directing the police to investigate the charges of alleged financial fraud.

The Lilavati Kirtilal Mehta Medical Trust (LKMM Trust) has alleged in the complaint that of the Rs 14.42 crore misappropriated by its trustees, Rs 2.05 crore were received by Jagdishan.

It also claimed that the offer of Rs 1.5 crore disguised as Corporate Social Responsibility (CSR) funds to hospital staff shows the intent to destroy evidence and obstruct justice.

Despite judicial findings and multiple complaints, HDFC Bank failed to act, violating Section 166 of the Companies Act and SEBI governance mandates, the Trust alleged.

The bank, however, has denied the allegations, calling it "outrageous and preposterous".