A Division Bench of Justices AS Gadkari and Rajesh Patil on Wednesday recused themselves from hearing HDFC Bank MD & CEO Sashidhar Jagdishan’s petition seeking quashing of an FIR filed by Lilavati Hospital Trust.
The case will now be reassigned to a new bench, prolonging the high-stakes legal battle between India’s largest private bank and one of Mumbai’s most prestigious medical institutions.
The Lilavati Kirtilal Mehta Medical Trust’s FIR alleges Jagdishan accepted a ₹2.05 crore bribe to help the Chetan Mehta Group maintain “illegal control” over Trust affairs. In a June 9 statement, the Trust claimed:
- The CEO provided financial advice to manipulate the Trust governance
Jagdishan’s family received “free medical treatment” at Lilavati Hospital
₹48 crore Trust deposits with HDFC Bank created a conflict of interest
₹1.5 crore offered as CSR funds, allegedly to destroy evidence
Bank’s Counterattack
Senior Advocate Amit Desai, representing Jagdishan, dismissed the allegations as “one of the most absurd claims,” arguing the FIR is retaliation for HDFC Bank’s ₹65.22 crore recovery proceedings against Splendour Gems Limited, a Mehta family-owned company defaulting since May 31.
“The complaint surfaced only after approaching Finance Ministry, RBI and ACB failed,” Desai contended, alleging misuse of the Trust’s reputation to pressure the bank. HDFC Bank has officially termed the allegations “malicious and baseless,” framing them as tactics to obstruct legitimate loan recovery.
Next hearing date to be determined after case reassignment.
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